India shipped in $ 1.4 bln. food products to US in `08-09: FDA

India shipped in $ 1.4 bln. food products to US in `08-09: FDA
Delhi, November 27, 2009: India shipped in $1.4 billion of food products to United States of America (USA) in 2008-09 and it’s pharmaceutical companies exported medicines worth $1.38 billion to USA in preceding fiscal, registering a 39 per cent growth in dollar terms, said Mr. Bruce Ross, Country Director of FDA.
In his address at ASSOCHAM Knowledge Millennium Summit here today, Mr. Ross said that food products exports to US in 2008-09 mainly consisted of shrimp, cashews, spices and tea.
He exuded confidence that Indian exports of medicines and pharma products would substantially increase to USA to the best satisfaction of its people since pharma companies have been following stringent benchmarks to manufacture such products.
According to him, out of 6,300 active drug imported in USA from various parts of the world, 1700 are from Indian companies and that shows the potential for Indian pharma companies to enhancing their exports, pointed out Mr. Ross.
India ranked Fourth in exporters category of drugs to USA, contributing a share of 6% in its total medicine import. Share of India’s ranking has been 8th in food product’s exports. It’s ranking in devices exports to USA has been 25th. Devices exports comprised x-ray systems, TVs and monitors with cathode ray tubes, microwave devices, lasers, tanning beds, etc. includes electronic radiation-based medical devices. Cosmetics exports ranking has been 14 and those of animal feeds 15th.
Referring to challenges of globalization, Mr. Ross said that it has fundamentally changed the environment for regulating food and medical products as also created unique regulatory challenges for FDA.
These consisted of more foreign facilities supplying the U.S., increasing volume of imported products, more outsourcing of manufacturing and clinical trials, greater complexity in supply chains and growing complexity of products and manufacturing methods, he pointed out.
Some of the other challenges that he named included imports coming from countries with less well developed regulatory systems and greater opportunities for economic fraud.

Harsh provisions of drugs amendment act `08 being diluted to protect original drugs MFRS.: DCGI

Harsh provisions of drugs amendment act `08 being diluted to protect original drugs MFRS.: DCGI
Delhi, November 27, 2009: Dr. Surinder Singh, Drug Controller General of India (DCGI) on Friday announced that some of stringent provisions in Drugs Amendment Act 2008 are being diluted to ensure that genuine manufacturers of drugs and pharma products are not harassed in court of laws for their alleged involvement in making of spurious drugs.
In his concluding remarks ate to ASSOCHAM organised 7th Knowledge Millennium Summit here today, Dr. Singh said that harsher and stringent provisions earlier incorporated in the proposed amendment Act to punish fake manufacturers of pharma products are being currently scrutinised by Ministry of Law & Justice.
He, however, added that in the proposed Amendment Act, the government is unlikely to empower drug inspectors with authorities to recommend stringent punishment for genuine drugs manufacturers who are falsely ascribed and attributed allegations so that courts do not take strong view against them.
This is being done since Indian pharma industry represented against such stringent punishments proposed in the Drug Amendment Act, arguing that at least genuine manufacturers are not dragged into court of law on grounds of false allegations laid out against them out of vindictiveness, pointed out Dr. Singh.
He said that while the government will take strongest possible view to punish those that indulge in fake drug manufacturing but come out with provisions to protect original manufacturers so that these are not harassed and for that the authoratitive powers would not be conferred upon drug inspectors after the amendment to the Act are notified.
Speaking on the occasion, Mr. Bruce Ross, Country Director of FDA said that domestic manufacturers of drugs and pharma products would have to enhance their quality and standards to continue to export their products in US. We keep strong watch on the CGI and its activities to protect pharma consumers in US as also promote bilateral pharma trade between India and USA.
Among others who spoke on the occasion included ASSOCHAM President Dr. Swati Piramal who said that India would emerge a strong pharma product making country to supply drugs to world consumers at many times cheaper a price with global established standards and benchmarks.

Industry News: 10th -17th November 2009

Kingfisher Airlines, India’s Five-Star Airline, Extends Avionics and APU Contract with Honeywell 
Delhi, November 17, 2009: Honeywell (NYSE: HON) announced today that it will provide a suite of its safety and navigational avionics, as well as the fuel-efficient Auxiliary Power Unit (APU), to Kingfisher Airlines. The airline also finalized a long-term service agreement on the Honeywell APU to further reduce operating costs, and will be the launch customer in the Indian subcontinent region for Honeywell’s LED navigational lighting.
“Honeywell’s APU decreases on-aircraft maintenance costs by up to 45 percent while experiencing up to 60 percent fewer unscheduled repairs over other APUs in its class size,” said Mike Madsen, Vice President of Airlines, Honeywell Aerospace. “This reliability, coupled with lower weight, increased route efficiencies and high reliability provided by the Honeywell avionics package, will reduce Kingfisher’s overall operating costs through lower fuel burn, more direct routing, and reduced maintenance and training costs.”
“At Kingfisher Airlines, our promise to our customer is safety and service, and that is why we have been provided the five-star designation,” said Mr. Hitesh Patel, Executive Vice President, Kingfisher Airlines. “Honeywell’s ability to customize its service offering to match with airlines’ specific needs adds to their credit of being a technologically superior company.”
Honeywell’s 131-9A APU is the most commonly used APU for single-aisle commercial transport, with more than 1,700 APUs in service including forward-fit and retrofit. An APU is a small gas-powered turbine engine that provides bleed air for main engine starting and electrical power for cockpit and galley systems.
Honeywell introduced the 131-9A in 1998 and continues Kingfisher – APU/Avionics technological advances to the design -for example, an available de-rate modification reduces fuel consumption by 5 percent by optimizing power output for the aircraft, while also reducing carbon and other emissions. 
Asia’s largest conference on software testing to be held on 19-20 Nov, 2009 in Bangalore 
Delhi, November 16, 2009: QAI (www.qaiglobal.com), the world’s leading Operational Excellence consulting firm, announced Asia’s largest conference on Software Testing with their 9th Annual Software Testing Conference (STC) 2009 (www.qaiglobal.com/minisites/stc-2009/index.htm) to be held in Bangalore on November 19th and 20th, 2009. With more than 600+ delegates expected, the conference, in its 9th year, celebrates India’s global leadership in Software Testing.
The conference will feature 12 keynotes with leading gurus from all over the world like Michael Bolton, Brian Wells, Bruno Legeard, Martin Gijsen and Makrand Teje amongst others and over 35 best practices have been selected to speak at the conference. Over 415 author intents were received and nearly 240 best practices submitted for the Best of the Best Awards 2009. These awards will be held on the 19th evening as a part of the conference.
STC 2009, organized in association with the Edista Testing Institute (ETI), is a platform where practitioners from various organizations share and learn the current best practices, and the future possibilities on how to manage not only change and continuity, but perhaps paradox more generally. Ninth in the series, STC 2009 will include four specific tracks focusing on Test Business Leadership, Test Program Management (Test Management, Team Management, Test Estimation etc.), Techniques and Tools and Emerging Areas.
Exclusive strategic CXO Breakfast sessions will be held on both days of the conference which will be only by invitation to be attended by CXOs and the leaders from the Software Testing industry.
Representatives from over 250 organizations have already registered to participate in the conference. Delegates attending will be the representatives from the leading software companies in the Asia Pacific region including CTOs, CXOs, Testing Experts, Consultants and Trainers, Offshore Testing Center Heads, Testing Managers, Test Center Heads and Practitioners, Software Engineers and Developers, Project Managers, Team leaders, and others. There has also been widespread interest from various international delegations like Singapore, Malaysia, South Korea, Sri Lanka and Australia, to participate in the conference as it offers one of the rare opportunities to meet the industry experts and gurus.
For over 15 years, QAI has brought together international representatives and recognized thought-leaders to share information, learn new software quality processes, and discuss software practices through a number of prestigious events like Asia SEPG Conference, Project Management Leadership Conference (PML), ‘Software Estimation Colloquium (SEC), IT Service Management Conference (ITSM)’ and the International Software Testing Conference (STC). 
Economy is getting back on track: CII National Council 
Delhi, November 16, 2009: Demand is picking up across sectors and the economy is getting back on track, felt members of CII’s National Council, at a meeting held in Mumbai on Friday, 13th November. Projects which had been placed on the backburner after the financial crisis are slowly coming back on the table. Although bank credit growth remains sluggish, this has been partly compensated by other sources of finance from the capital market. The availability of foreign capital has increased with India being viewed as a favourable investment destination. According to the CEOs snap poll conducted at the meeting, over 70% of members felt that GDP growth will exceed 6% in 2009-10.

According to the State of the Economy Report released by CII, while industry and services have recovered on the back of the government’s stimulus package, the performance of agriculture is causing concern. “Economic indicators are looking up – industrial production has shown a significant upturn, business confidence has surged, financial markets have stabilized and capital inflows have returned”, said Mr. Chandrajit Banerjee, Director General, CII. Despite these upside prospects, the performance of agriculture is likely to pose some downside risks to the growth outlook for Indian economy in 2009-10.

According to the report, corporate results for the second quarter of the current fiscal showed some signs of stabilization. Results available for a sample of 1,022 companies (774 manufacturing sector and 248 service sector) for the quarter ending September ‘09 reveal that despite a year-on-year decline of 5.4% in net sales of companies, net profits have increased by 38.5% on a year-on-year basis. On a quarter-on-quarter basis, net sales have increased by 9.2% after three successive quarters of decline, indicating a recovery. However, net profits of companies have declined by 0.2% due to higher raw material and interest costs.

Even as output is recovering, India’s international trade which started falling since December 2008 continued its precipitous fall in the first half of the fiscal year 2009-10. However, as imports have fallen at a faster rate than exports, India’s trade deficit and its current account deficit has narrowed in comparison to the previous year. With capital inflows resuming in the first quarter of 2009-10, the overall Balance of Payment ended in a marginal surplus.

Another major challenge that will confront policy makers is fiscal consolidation. The government’s finances, which have been stretched due to the crisis, continue to remain pressured in the first half of 2009-10. Even when the total receipts of the government grew by only 1.9%, total expenditure increased by 28.6% over the corresponding period of last year. However, there are no signs of deviation from the full year target, as the fiscal and revenue deficits during the first half of the year were 49.3% and 58.4%, respectively of the 2009-10 budget estimates.

Although liquidity conditions have remained comfortable during the current fiscal year, credit growth to commercial sector had seen significant moderation. In such a scenario, it was felt that interest rates are likely to remain stable for a while. Given that the recovery in the industrial and services sector are still at a nascent stage, rate hikes by the RBI, due to higher inflationary expectations, could have an adverse impact on the recovery process. The RBI would need to consider the costs of a premature reversal of the accommodative monetary policy stance. In turn, the government needs to consider supply side measures to check the rise in food prices.

In view of the recent recovery, CII members recommended that the stimulus measures should not be withdrawn too soon. In particular, the CENVAT rates should be maintained till we move on to the GST system. Another recommendation was that the tax benefit on equity mutual funds should not be withdrawn, in order for domestic savings to be channelised into the market. Members of industry also remained concerned about the weakness of India’s infrastructure. In particular, their biggest worry was the lack of a pipeline of new projects in Infrastructure. A related concern was the large number of problems faced by industry in executing big projects. 
Competition policy to help common man: Pranab Mukherjee 
Delhi, November 16, 2009: Mr. Pranab Mukherjee, Finance Minister of India, has stressed the need for enhancing competition for the benefit of the common man. The Finance Minister was speaking at a Conference “Competition, Public Policy and Common Man”, jointly organized by the Competition Commission of India (CCI) and the Confederation of Indian Industry (CII). He said that competition helps everyone through its multifarious benefits, including increase in productivity, efficient allocation of resources, improvement in quality of goods and services, reduction in costs etc.

The Finance Minister noted that the benefits of competition in India are for everyone to see in various sectors, including telecommunication, civil aviation. He, however, noted the benefits of competition have not yet reached the agriculture sector fully. The prices received by farmers continue to be much lower than that paid by consumers. While enhancing healthy competition in other sectors, there is a special need to focus on agriculture sector, suggested the Finance Minister.

Mr Salman Khurshid, Minister of Corporate Affairs & Minority Affairs, speaking at the inaugural session of the Conference, reaffirmed the government’s commitment to develop stable, efficient, transparent and acceptable competition regime to help the country attain freedom from poverty. He said that the control in the initial phases of the development in the Indian economy was a far sighted approach to create a robust platform for competition policy. We are now prepared for a full fledged competition, when the economy has started growing at a robust pace to fulfill needs of the millions of people in the country, Mr Khurshid observed.
Ms Neelie Kroes, Commissioner for Competition, European Commission, appreciated the purpose and theme of the Conference. She said that competition regime’s long terms survival depends on the common man. Communicating the benefits of competition and the need for enforcement policy to ensure this is vital. She mentioned that any reform produces a range of reactions, all of them may not necessarily be positive. Maximization of transparency with regard to how and why a decision was made becomes critical to undermine the opponents, she emphasized.

Justice Dr Arijit Pasayat, Chairman, Competition Appellate Tribunal, spoke about the need for enhancing the protection of consumers’ interest, which is well served through a competition policy. Competition policy is required to keep the economy strong. The usefulness of the competition policy has only been underlined by the recent financial crisis, where lack of regulation led to market failure.

Mr K M Chandrashekhar, Cabinet Secretary, in his address, mentioned the benefits of the competition policy with reference to the government’s procurement system. He said it would be indeed helpful if CCI could help the procurement agencies in policy decisions with regard to reduction in cost of procurement, increased transparency, enhanced sales revenue and speedy processing.

Welcoming the guests on behalf of CCI and CII in the seminar, Mr Dhanendra Kumar, Chairperson, Competition Commission of India, pointed out that this was the first major event after the organization of the full Competition Commission in India. He said that Competition adds not only to consumer welfare, but public welfare and public goods, and sub-serves the basic objectives of the public policy which is equity and inclusive growth. Competition regime seeks to translate the benefits in terms of boost in GDP growth and percolate the benefits to common man, Mr Kumar pointed.

Thanking the guests on the occasion, Mr Hari S Bhatia, Vice President, CII, stressed on the need for promoting competition in the economy for the benefits of both consumers and the industry. He reiterated CII’s active involvement in advocacy of issues pertaining to competitions. He assured continuing support of CII towards building a strong competitive regime in the country. 

Industry News:1st November – 6th November 2009

Relationship between India and European Union will reach new heights: Mr Ajay Shankar
Delhi, November 06 2009: The tenth India –EU Business Summit was organised by the Confederation of Indian Industry in association with the Ministry of Commerce and Industry here today. The summit was attended by large Indian and European businessmen.

The two sides met at a time when some optimism is returning around the globe and the relationship between India and the European Union will reach heights that will surprise all of us said, Mr Ajay Shankar, Secretary, Department of Industrial Policy and Promotion, Ministry of Commerce and Industry.

The global cooperation, global partnership, global engagement and the consensus across the world helped in moderating the pain that was expected, in the return of the sense of optimism a little earlier than expected. In the process of liberalization, the Government has now withdrawn the requirement of any Government permissions and clearances for any technology transfers and royalty payments, said Mr Shankar.

He further said, the Government has taken two important initiatives for making the business easier in India. The first is that the Government is trying to partner with the leading IT company to create an e-base environment system for getting the required Government approvals and also making the payments electronically. The second initiative is to actively engage with the state governments to improve the business.

Mr Philippe de Buck, Director General, BUSINESSEUROPE said this summit is crucial and timely since the world has changed after the global economic crises and there is also a need for India and European Union to discuss on the climate issue.

While addressing about the Indian experience in Europe, Mr Baba Kalyani, Chairman and Managing Director, Bharat Forge said that access to new customers, new technologies, state of the art production facilities, modern skill sets, knowledge and access to critical natural resources in production value chain are the main drivers for Indian business investing in Europe.

SKF, a leading European bearings company in India opened-up a development centre in Bangalore five years back. The company has now moved their total development activity for the two wheeler market to this centre in Bangalore because of the closeness to the Indian customers, many leading two wheeler manufacturers and access to talent base said Mr Tom Johnstone, President and Chief Executive Officer, SKF while addressing about their experience in doing business in India.

Mr Chandrajit Banerjee, Director General, Confederation of Indian Industry, while moderating the summit said both sides have indeed come a very long way since the first summit, which was held in Lisbon in 2000. There have been a series of new initiatives from both sides in the last decade, new sectors and areas have been added in each summit and this has resulted in deeper collaboration between India and the European Union. As the world economy recovers, this summit assumes a very special significance during its 10th anniversary.

While concluding the summit Mr Subodh Bhargava, Past President, Confederation of Indian Industry and Chairman, Tata Telecommunications Limited said that the new confidence and aspiration of the Indian corporates has made the investment relationship come-in to greater focus. Today Indian corporate have made investments in Europe and it has now become a two way process.

SMEs on both sides are vibrant and dynamic, in India these are increasingly venturing into hi-technology led by technocrats and funded by enthusiastic investors; these SMEs can become an important link between the two sides, said Mr Bhargava.

Evolving Australia-India Relations – Moving Beyond Cricket
Delhi, November 06 2009: CII organized a panel discussion titled “Evolving Australia-India Relations – Moving Beyond Cricket’ on 6 November preceding the official visit of Australian Prime Minister to India on 6 November in New Delhi. The panelists included Dr Sanjay Baru, Consulting Editor and Editor designate Business Standard, Mr Peter Linford, Senior Trade and Investment Commissioner South Asia and Minister Commercial Australian High Commission Mr V K Mathur, Senior Member CII and Chairman and Managing Director Inapex Ltd, , Mr Kulbhushan Trehan, Advisor Thiess India Ltd and Prof R Sadananda, Visiting Fellow (School of Computer Science and Engineering) University of South Wales Australia.

Addressing the panel discussion Dr Sanjay Baru pointed that the two countries did not pay adequate attention in the past to promote political and strategic relationship, which remained neglected for a long time. He said that with increased economic cooperation, ‘convergence of political and economic interests’ has emerged between the two countries. The important areas of cooperation that have surfaced recently are building of ‘East Asian Community’ on the pattern of European Community, Indian Ocean relations and Islamic terrorism.

Mr Linford mentioned that the Australian government has made huge efforts in recent years to promote bilateral relations between the two countries, which is evident from the several visits of Australian leaders to India in the past one year. He stressed on bridging the gap in the understanding of each other among the people of the two countries. He lauded the efforts of the Indian government in handling the current economic crisis and at the same time sustaining a high economic growth. He said that a free trade agreement between the two countries was under study and the two governments were working to find a common ground and iron out the differences in the opinions. He said that India emerged as the 6th largest trade partner of Australia in 2008, compared to its 8th position the previous year. He termed the relationship between the two countries as “obvious, vital and valuable.

Mr V K Mathur said that India and Australia enjoy very friendly relationship and that there did not exist any political dispute that could obstruct the further growth in bilateral relations. He laid stress on cooperation in promoting education, tourism and aviation services to realize huge potential of business between the two countries. Mr Trehan and Mr Sadananda asked to deepen the relations through increased cooperation in the fields like mining, infrastructure, tourism, skill development and education. Mr Trehan said that the two countries should now adopt the concept of ‘move from cost to value’.

Confederation of Indian Industry and U.S.-India Business Council Announce Healthcare Partnership
Delhi, November 06 2009: The Confederation of Indian Industry and the U.S.-India Business Council today announced a major new advance in healthcare collaboration, partnering under the banner of the USIBC-led “Coalition for Healthy India”.  The partnership was announced on the sidelines of CII’s 6th Annual Healthcare Summit, which was attended by a delegation of senior healthcare executives from the headquarters of several USIBC member companies.
The Coalition for Healthy India, managed by the US India Business Council, is dedicated to ensuring that Indian patients have access to the latest and most effective treatments and cures. It was created in 2007 to bring together like-minded members of the U.S. and Indian business communities, non-governmental organizations, patient advocacy organizations and health professionals to coordinate and support improved access to healthcare in India.
According to Mr. Chandrajit Banerjee, Director General, Confederation of Indian Industry: “The Confederation of Indian Industry and the U.S.-India Business Council have long collaborated to support healthcare improvements in India. Today, we’re proud to announce an exclusive partnership between USIBC and CII in the form of a joint CII-USIBC Healthcare Task Force”.
Sharing the dais was Dr. Petra Laux, Head of Global Public Affairs, Novartis.  “At Novartis, we’re driven every day by a commitment to research and development that brings innovative new products to the communities we serve.  This aligns seamlessly with the number one goal of the Coalition for Healthy India – ensuring that Indian patients have access to the latest and best treatments and cures.  The partnership announced with CII today will lift the Coalition for Healthy India to new heights”.

Dr. Prathap C Reddy, Chairman CII National Committee on Healthcare & Chairman of Apollo Hospitals Group, noted that the healthcare systems of the U.S. and India have much to learn from one another.  “The partnership we’re announcing under the Coalition for Healthy India brings together the foremost healthcare innovators from two of the world’s most dynamic societies.  This will not only have a positive impact on patients in India, it will benefit patients around the globe”.

The Coalition for Healthy India focuses on five key pillars: raising the standard of care; developing new treatments and cures; ensuring access and affordability; getting medicine to patients; and corporate social responsibility.  All of these efforts are channeled with a particular emphasis on improving the situation in rural areas where more than 60% of Indians live and work.

The Coalition for Healthy India Healthcare Task Force will serve as an advisory council which guides and coordinates USIBC and CII efforts towards improving healthcare in India.  The Task Force will be chaired on the Indian side by Dr. Prathap C. Reddy and on the U.S. side by Dr. Vas Narasimhan, Head, Vaccines North America, President, Vaccines USA, Novartis Vaccines & Diagnostics, and board member of the U.S.-India Business Council.

Dr. John D. Ayres, Director, Product Health Risk Assessments, Eli Lilly and Company, stated:  “The Coalition for Healthy India is poised to have a major impact on issues that are important to patients. This collaboration between USIBC and CII means that healthcare innovators in the U.S. and India will now have a permanent forum in which to share and generate new ideas and ultimately help implement solutions to the healthcare challenges facing all of us”
Coalition for Healthy India brings together like-minded members of the U.S. and Indian business communities, non-governmental organizations, patient advocacy organizations and health professionals to coordinate and support improved access to healthcare in India.
Confederation of Indian Industry is a non-government, not-for-profit, industry led and industry managed organisation, playing a proactive role in India’s development process. Founded over 114 years ago, it is India’s premier business association, with a direct membership of over 7800 organisations from the private as well as public sectors, including SMEs and MNCs, and an indirect membership of over 90,000 companies from around 385 national and regional sectoral associations.

CII catalyses change by working closely with government on policy issues, enhancing efficiency, competitiveness and expanding business opportunities for industry through a range of specialised services and global linkages. It also provides a platform for sectoral consensus building and networking. Major emphasis is laid on projecting a positive image of business, assisting industry to identify and execute corporate citizenship programmes.

The U.S.-India Business Council (USIBC), formed in 1975 at the request of the Government of India and the U.S. Government to deepen trade and strengthen commercial ties is hosted under the aegis of the U.S. Chamber of Commerce. The U.S. Chamber of Commerce is the world’s largest business federation representing more than 3 million businesses and organizations of every size, sector and region.

Unveil `Farm Policy’ to Change Rural Economy in 3 Yrs : Assocham
Delhi, November 06 2009: The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has sought a long-term farm policy so that current crop patterns are diversified and use of chemicals and pesticides in them are gradually discouraged and replaced with environment friendly materials.
The suggested policy should prescribe a time period of 3 year’s to yield desired results and gradually move Indian agriculture on to achieve radical changes in it and especially so, in India’s rural economy.
The proposed policy should also promote farmer industry interaction by putting in place efficient supply chains to connect farmers to urban consumers and processing industries.
In addition, it should aim at for creating a stake for retail stores in farmer prosperity and introduce drip irrigation facilities and intensify focus in crop diversification patterns and motivate farmers to gradually discard excessive use of chemicals to ensure higher yield with environment friendly materials.
In a statement, ASSOCHAM President, Dr. Swati Piramal demanded that in proposed long-term farm policy, enough incentives be provided to farmers to integrate them with animal husbandry & poultry and introduce short term commercial crops comprising floriculture, horticulture, cultivation of herbs and spices for raising rural farm incomes.
Agricultural management should become central to moving farming from tradition to a steadily income generating activity in the new long-term policy which should also promote of corporate farming, using land as a share and business like farming practices.
According to ASSOCHAM, the new policy should have stipulations so that problem of heavy farm indebtedness is seen in perspective to tackle this problem. Between Fiscal 2000 and 2007 investment in agriculture as percentage of GDP has come down from 2.4 to 2.1 per cent. The share of private sector in gross investment in agriculture continues to be above 70 per cent though it has come down from 82.3 to 72.7 per cent.
The share of the public sector has been rising sharply, yet at 27.3 per cent it is still inadequate. Also any scheme of loan waiver or similar help should not impact on the private sector credit to farmers even while preventing their exploitation by moneylenders as bulk of farmers still depend on private credit sources.
The government should tackle this fundamental imbalance of credit in any scheme, intended to prevent widespread farmer distress within a year of its take over, that is before the next Kharif crop planning starts in May 2010.
The ASSOCHAM has also proposed that the government incentive to the private sector in agriculture by treating 150% of investment by private firms in the agricultural infrastructure chain as deductible expenditure
In addition, Dr. Piramal also said that food processing industry should be recognized as hi-tech industry and the government should facilitate establishment of Model Agro Processing Centre. Establishment of Model Agro-Processing Centre should be encouraged and developed. 

Citi India Joins 40,000 Volunteers Globally on “Global Community Day”
Delhi, November 06 2009: Over a thousand Citi India employees will join over 40,000 colleagues on Saturday, November 7, 2009 in more than 90 countries across the world on the company’s fourth “Global Community Day”. An annual event, “Global Community Day” provides Citi employees a unique, global platform to volunteer in their communities. In India, employee groups, accompanied by their families and friends, will be volunteering their special skills and expertise for a variety of projects addressing specific community needs including climate change, literacy, housing, sports, across 27 cities including Mumbai, New Delhi, Chennai, Kolkata, Bengaluru, Ahmedabad, Bhubaneshwar, Chandigarh, Hyderabad, Lucknow, to name a few.
In order to fully leverage the enthusiasm employees have demonstrated for “Global Community Day” and make a meaningful difference to each local community, Citi India has partnered with several leading NGOs in each geographic location to jointly conceptualize day-long volunteering programmes. Some among these are Akanksha Foundation (Mumbai), Friends of Women’s World Banking (Ahmedabad), Pratham (6 cities), SOS Children Village (Bhubaneshwar) and Annamma School in Vijayawada. Each volunteer team, a mix of employees drawn from different Citi businesses across diverse hierarchies and age groups, will accomplish a clearly defined set of tasks assigned to it, such as conducting educational sessions on climate change, construction of houses for underprivileged communities, senior citizen support, cleaning of the Jamuna river and tree plantation.
The over-arching theme for Citi India’s “Global Community Day” 2009 is Climate Change. In numerous locations employees will be conducting an educational session on the basics of climate change and its adverse effects on the environment. Additionally, the activity will also end with ways in which all of us, in our way, can make a difference to correct the mistakes that are being made.
“Global Community Day is one of the many ways we demonstrate our commitment and responsibility towards the communities we have lived and worked in during our 107-year history in India. This being my first year in the country, I am very pleased to see the enthusiasm of our employees to join colleagues across the country and the globe to engage in issues where they can make a positive difference.” said Mark T Robinson, CEO, Citi South Asia.
“The most noteworthy aspect of Global Community Day in India is its widespread reach and cumulative impact, which covers the length and breadth of the country. The volunteer strength stands testimony to the fact that the Day has become a much-awaited occasion for all of us and this year too, each of us is looking forward to November 7.” said N. Rajashekaran, Country Business Manager, Global Consumer Group, Citi India.
“On Global Community Day, Citi employees, together with their family and friends, will volunteer their special skills and expertise in more than 90 countries with one goal in mind – to make a difference in the communities where we live and work,” said Pam Flaherty, President and Chief Executive Officer, Citi Foundation and Director, Corporate Citizenship. “Community engagement is very important, especially during these difficult economic times, when the needs are so great. Whether it is teaching financial education to young people; planting trees to combat deforestation; refurbishing schools in poor communities; or serving meals to the homeless, Citi employees will turn out to help because volunteering is one of many ways that Citi strengthens the communities where we live and work.” 

TERI Organises 2nd National Educators’ Conference to Discuss the ‘Road to a Sustainable School’
Delhi, November 05 2009: As the world gears up for the Copenhagen summit, a lot is talked about the issue relating to sustainable development to reverse the trend of climate change. Thus, schools play a major role in nurturing right behaviours in students and equip them to become sensitive towards the environment. Thus, it is important to build capacities of the teachers for accurate dissemination of knowledge. With this intention, The Energy and Resources Institute (TERI) organised its second 3-day School Environment Educators Conference with 300 teachers from schools coming from all over the country. Themed around ‘Road to a Sustainable School’, the conference discussed several issues around sustainable development like green buildings, green campus, managing and conserving water, managing solid waste, school carbon foot-printing, cleaner transports, etc.
Present on the valedictory function of the conference were Mr. Kapil Sibal, Hon’ble Minister of Human Resource Development (MHRD Dr. R.K.Pachauri, Director-General, TERI and Chairman IPCC and Ms. Ranjana Saikia, Associate Director, TERI.
Addressing the gathering, Mr. Kapil Sibal said, “When I look at the mother earth, I am reminded of a bank account. We keep drawing the capital from the account in the form of natural resources without replenishing it. As a consequence, our sustenance is under threat. We cannot solve our problems with the same thinking with which we have created these. We need to change the mindset and I am delighted to see that this conference has empowered those who nurture the thinking of the future. Its time for us to stop giving answers to the child and allow them to find answers themselves that will help in the formation of a new way of thinking. Our education is based on nature but its not attuned to the dynamics of it. Thus, the child needs to go out side the four walls of the school to understand it in its true sense and discover it. The solution to our problems won’t come from politicians but from the students, through you- the teachers. “
Concluding Mr Sibal said, “This conference should be a larger movement of educators where solutions to the grave dangers of climate change could be given. Environment issues should be an integral part of our school curriculum and practicing environment education in a sustainable way is the need of the hour.”
This conference – a first of its kind, brought together stakeholders from school environs, ranging discussions on the environmental aspects of the processes linked with education. Around 300 teachers attended the event and provided an interactive platform for Indian entrepreneurs to come discuss the adoption of possible, economically viable, and innovative solutions to the challenge of ‘ESD’ (Education for Sustainable Development).
The main objectives of the conference were:

• To provide an interactive platform to the stakeholders in education to discuss the successful pathways for turning their schools green
• To seek participation of members of the government, academia, and policy makers
• To encourage the media- the fourth pillar of democracy- to disseminate information
• To present replicable case studies from participants involved in Education for Sustainable Development
• To find a comprehensive solution to the adverse impacts of unsustainable lifestyle choices on the environment, with appropriate use of available resources and technology.

The resource panels in the event were represented by corporates, educators, policy makers, academia, and the media.
Emphasising on the need to build such bridges of learning, Dr. R.K. Pachauri said, “It would be wonderful if teachers go beyond the regular pedagogy and actively involve in developing the school as a sustainable habitat. The students are most vulnerable as climate change will affect them in their future. Climate change is only a symptom of a much larger problem — unsustainability. If teachers are empowered then clearly there would be a major multiplier effect in our society. We need to change the way we live, the way we develop our technologies, etc to move towards the path of sustainability. “
The first of the Educators’ Conference organised by TERI in 2008 addressed key issues related to environment — with a focus on Climate Change — to enable teachers to play a more proactive role. The drive was an essential process of enhancing environment education knowledge followed by positive action. The event had successfully addressed concerns of the teaching community on environment education with a special focus on the issue of climate change. The sessions revolved around formal and non- formal approaches. The residential event also helped in establishing networks within the teaching fraternity. The conference threw light on critical issues of concern and possible interventions at the teacher’s level which can be applicable in the classroom.
TERI recognised as RCE (Regional Centre of Expertise) by the UNU (United Nations University) is at the helm of affairs in environment education and awareness. Several of its projects and activities help in enriching the school curriculum to encompass real-world skills to make our students productive and useful members of professional workforce. It also sensitizes children from an early age on environment issues. 

Traditional healthcare system a solution for ‘bottom of the pyramid’, says Sam Pitroda
Delhi, November 05 2009: Indian healthcare system has showed a remarkable improvement over the years with remarkable improvements in some of the important healthcare indices. But there are bigger challenges ahead, including the vital one of taking improved healthcare facilities to the masses. For a comprehensive solution to our healthcare shortcomings, we need to adopt the traditional Indian model in the healthcare system, said Mr Sam Pitroda, Chairman of the National Knowledge Commission, Government of India, at a health summit organised by the Confederation of Indian Industry (CII) here today.

In his keynote address at the two-day 6th India Health Summit ‘Taking Quality Healthcare to the Masses’, Pitroda proposed a ten-point agenda to reach out to the ‘bottom of the pyramid’, and defended the need for adopting the traditional healthcare system for the masses, saying the Western method of healthcare reaches only the ‘top of the pyramid’.

While stressing the need to form healthcare communication and healthcare education, and research facilities related to health, Pitroda said the key is to lay out a plan to implement the target.

Pitroda also called for setting up working groups at state levels, particularly at district levels, to ensure wider reach of healthcare facilities. ”If we do not have a plan ready for the state and district levels, we can expect little success in this regard,” he maintained.

During his speech, Mr Pitroda also said that the government is prepared to collaborate but, more importantly, we need a viable plan.

There is a lot of potential in the sector, but it’s time we needed a comprehensive approach in taking quality and affordable healthcare facilities to the grassroots level, he added.

Earlier, in his special address, Dr Prathap C Reddy, chairman of the CII National Committee on Healthcare, and chairman of the Apollo Hospitals Group, called for the need to accelerate momentum for allowing access to the masses. He also stressed the need for building newer healthcare solutions for a better tomorrow.

Addressing the summit, Mr Bhavdeep Singh, Chairman of the 6th Health Summit, and CEO of Fortis Healthcare Limited, said there is a call for action to meet the requirement of healthcare facilities.

He called for the need to enhance technology to catalyze the growth and reach, better accountability, preventive rather than curative approach.

In his concluding remarks, Mr Tejpal Chopra, Co-chairman of the 6th Health Summit, and President and CEO of GE India, said the healthcare industry’s growth is very critical for India. He even called for a collaborative approach to find a solution for the bottom of the pyramid.

Earlier in his welcome address, Mr Chandrajit Banerjee, Director General, CII, outlined CII’s agenda on healthcare including public health, healthcare services and delivery, and medical technology.

Growth depends on how India’s internal security is maintained & preserved: Pallam Raju
Delhi, November 04 2009: As India aspires to attain a ‘developed’ nation status in the near future, the momentum of India’s growth depends on how nation’s internal security is maintained and preserved. To this effect the Indian Government has been undertaking continuous efforts to enhance its preparedness to counter various security threats, said Mr. M M Pallam Raju, Minister of State for Defence, Government of India. He was speaking at a Seminar on Network Centricity and National Security organised jointly by Directorate General of Information Systems, The United Service Institution of India (USI) and the Confederation of Indian Industry (CII). He further stated that the intelligence agencies operating at national and state level should be strengthened with coordination mechanism, intelligence analysis and dissemination of inputs in real time to the end user.
Adding a private sector’s dimension to the theme, he stated that there are significant opportunities for the private industry to partner in the homeland security and sub-conventional warfare space. The allocation for India’s homeland security agencies was increased by 25 percent in the budget 2009-2010. Paramilitary forces under the Ministry of Home Affairs include about 1 million personnel and have a budget of Rs 21,634.15 crore (USD 4.3 billion). The equipment and training must be upgraded and modernise in order to have an effective counter-insurgency internal security force.

General Deepak Kapoor, PVSM, AVSM, SM, VSM, ADC, Chief of Army Staff stated, advancement in technology has increased threats to national security. Advanced technology is harnessed in terrorist attacks, asymmetric warfare, 4th Generation warfare etc. Therefore timely actions like starting unique IT projects, information grids etc as a backbone to synergise and facilitate information flow are imperative. National security transcends all barriers, and it is as much a responsibility of a citizen as the defence services, General Kapoor added. He stressed on achieving synergy with multiple agencies, drafting nationwide architecture of a Geographical information system.

Major General Sandhu, Deputy Director, USI, stated that challenges to national security are unique and ever emerging in newer forms. He suggested formulation of National Security Doctrine powered by network centricity, collating security inputs and coordination. He added the need for developing instruments capable of meeting wide spectrum of threats, by creating concepts and putting them into practice.

Lt. Gen PC Katoch, UYSM, AVSM, SC, Director General of Information Systems, Integrated Headquarters of MoD (Army) said that IT has helped in shortening the response time, resource allocation, superior management, enabled effective concepts of speed, command and control. It has enabled synergised response to security threats at national level. Mr. Arvind Thakur, Chairman CII Core Group on Information Systems & Chief Executive officer, NIIT Ltd said that keeping in perspective the issues of national security, CII formulated a National Task Force on Policy Advocacy post 26/11 attacks. The task force aims at strengthening a nationwide security architecture with a focus on policy advocacy, spreading awareness of technology among the security forces and sensitise the industry to maintain an adequate security environment within their premises. 

Need for revamping standards on Fire Safety in Tall Buildings emphasized
Delhi, November 04 2009: Mr Rajiv Agarwal, Secretary, Department of Consumer Affairs, Ministry of Consumer Affairs, Govt. of India the Chief Guest delivering the Inaugural address emphasized the need to strictly enforce not only height restrictions in tall buildings but also insist on implementation of all “elementary safety measures” to evolve acceptable standards in the construction of tall buildings. He was speaking at the National Seminar on Fire Safety in Tall Buildings in New Delhi jointly organized by ANSI, BIS and CII today.

Mr Om Prakash, Fire Adviser, Ministry of Home Affairs, Govt. of India who delivered the keynote address outlined the current status of the construction of various tall buildings. Enumerating the various facets of the Fire Code he pointed out the various issues that create fire hazards including change in building plans, improper exits and signages, lack of fire alarm systems and training among building occupants and firemen. He indicated that the future would comprise of “intelligent buildings” where the fire brigade would need to be revamped. All this would need a major systemic change in the management and hazards prevention in tall buildings.

Mr Alindra Chandra, Additional Director General, Bureau of India Standards highlighted the 38 standards on fire safety and the 132 standards on fire fighting equipments laid out by BIS. He drew attention to the 2005 enacted National Building Code and also emphasized on evolving new standards in high rise buildings. Mr Chandra also alluded to the Standards Portal which was becoming an important ground for interaction among industry and standards bodies in India and USA.

Mr Blair Hall, Minister-Counselor for Economics, Environment, Science & Technology, U.S. Embassy, New Delhi stressed on the need for standards for a greater role in global commerce and assuring safety to people of USA and India. He mentioned that USA had the expertise in the management of tall buildings and extended co-operation.

Mr Pritam Banerjee, Head- Trade and International Policy, CII drew the attention of delegates on the new negotiations in WTO which would have effects, direct and indirect, on each industry segment. Underlining the cost of implementing new standard he appealed to industry to come forward with feedback to strengthen the negotiation agenda.

Standards & Conformance Cooperation Programme (SCCP) is a programme to improve access for USA companies into the Indian market and vice versa by boosting cooperation on standards and conformance issues. Companies, through this programme will have access to definitive information about the standards, regulations and conformity assessment mechanisms that affect the entry and ability to compete with products in both the US and Indian markets. The SCCP programme is a partnership initiative of US Trade and Development Agency (USTDA), Confederation of Indian Industry (CII), American National Standards Institute (ANSI) and Bureau of Indian Standards (BIS).

Dr Sarita Nagpal, Deputy Director General, CII delivering the vote of thanks recollected the invention of elevators for human transfer as a key contributor to the emergence of tall buildings. She also emphasized the immediate need for industry to get involved in the development of emerging standards in respective sectors to stay ahead on the WTO negotiations. 

Steel production needs to be doubled by 2020: Mr. Prathap Annawagari
Delhi, November 04 2009: As the Indian economy is looking up, the country’s steel industry is also moving northwards. During the last five years, the growth in the demand for steel has averaged to around 10 per cent. The surge in this demand would continue for the next decade or two. To meet this growing demand, the steel sector has to double its production in the next five years, and around 200 million tonnes (mt) by 2020. This was expressed by Union Minister of State (MoS) for Steel Mr Prathap Annayyagari at a seminar on steel oganised by the Confederation of Indian Industry (CII) here today.

Speaking as the chief guest on the CII Steel Summit on ‘Advantage India – An enabling framework for growth’, the minister said India’s current per capita consumption of steel is 47 kg, against the world average of 190 kg. However, this shortfall could be improved upon if our forward linkages of steel were aimed at tapping the rural demand.

The Ministry of Steel has signed over 220 memoranda of understanding (MoUs) for bringing additional capacity of 276 mt. Though most of these are brownfield , there are some Greenfield projects also on the anvil. There are various problems like land acquisition, availability of water and other raw material, besides forest and environmental clearance, and some of these issues have been mentioned in the New Mineral Policy, the minister pointed out.

Annayyagari also touched upon the fact that out of India’s total steel production of 55 million tonnes, about two-thirds — over 36 million tonnes — of crude steel is produced by secondary producers and standalone processors who are unorganised.

Earlier, Mr SK Roongta, chairman of Steel Authority of India Ltd, spoke on the opportunities and key challenges facing the steel sector. He highlighted four areas of challenge such as technology and process, availability of skilled manpower, issues relating to policy support and the resettlement and rehabilitation (R&R) policy. At the same time, he also maintained that aspirations of land holders had to be met. Another key challenge he referred to is increasing the productivity in plants.

“India has to find a way out to manufacture steel, and there has to be a quantum jump in steel production,” he pointed out.

In his special address, a day after assuming charge of the Union steel secretary, Mr Atul Chaturvedi said availability of land, environmental clearances and R&R issues were halting the progress of the steel sector. However, he expressed confidence that the land issues faced by various steel companies could be overcome.

In his concluding remarks, CII Director General Mr Chandrajit Banerjee said the steel industry was of pivotal importance to Indian industry and CII. “CII has been working towards strengthening the global competitiveness of Indian steel industry over the years through its specialized services related to quality, energy efficiency and competitiveness,” he said. He also said CII would also be keen to support the government on its endeavour to develop a mandatory energy efficiency improvement system under the proposed Perform, Achieve and Trade (PAT) scheme for the steel sector. This will help incentivise industry efforts to achieve energy efficiency, he pointed out.

Earlier in his welcome note, Mr B Muthuraman, chairman of the CII National Committee on Steel, and vice-chairman of Tata Steel, said though India is on a growth path, it faces many challenges like achieving the growth simultaneous with social and environmental sustainability. “For the Indian steel industry to grow and prosper, there are major challenges. There will be a strain on infrastructural and natural resources like land, water, power, railways, roads, iron ore and coal. The government needs to step in many of these areas like earmarking large tracts of land as well as formulate policies to allocate iron ore and coal resources to all steel plants,” he added. 

Symbiosis National Aptitude (SNAP) Test for PG and MBA Admissions to be Held on 20th December 2009 in 29 Cities Across India
Pune, November 04 2009: Symbiosis National Aptitude (SNAP) Test will be held on 20th December 2009 in 29 cities across India. To enroll, aspiring students must register online at http://www.snaptest.org by 24th November 2009.
Symbiosis National Aptitude (SNAP) Test is the mandatory common written test for admission to any Post-Graduate programme offered by the 12 Constituent Institutes of Symbiosis International (Deemed University).
After appearing for SNAP, students have to apply to the Symbiosis institute/s of their choice, and follow the individual selection process of the desired Institute to qualify for the admission to the Post-Graduate programmes of that Institute. However, the student’s SNAP score remains valid for all institutes under Symbiosis International (Deemed University).
SNAP test consists of evaluation in 3 broad categories: General Knowledge, English and Quantitative Analysis. The latter 2 sections are on the lines of the UPSC exams for the Indian Civil Service. According to Symbiosis Institute of Media and Communications (SIMC) Director, Prof. U.K.Chowdhury, “SNAP is an elimination test and it is crucial that students prepare for the Personal Interview and Group Discussions of the relevant institute simultaneously.” In fact, certain institutes also have further shortlisting criteria like home assignments, interview by seniors and psychometric tests. 

Investment in infrastructure sector in South Asian countries pre-requisite for region’s socio-economic development: Sushil Kumar Shinde, Union Minister of Power, GOI
Delhi, November 03 2009: Higher investment in infrastructure sector is a powerful countercyclical measure to fight economic slowdown in the South Asian countries. Infrastructure development can enhance the economic capacity of the region, boost internal demand and strengthen intra-regional trade and commerce, remarked Mr. Pranab Mukherjee, Union Minister of Finance, Government of India, while inaugurating the “South Asia Conclave on Enabling Regulation for Investment in Infrastructure” on 3rd November, 2009 in New Delhi, along with Mr. Sushilkumar Shinde, Hon’ble Union Minister of Power. The two day long conclave is being organised under the aegis of South Asia Forum for Infrastructure Regulators (SAFIR) by the Central Electricity Regulatory Commission (CERC) which presently extends administrative support to SAFIR, in partnership with Confederation of Indian Industry (CII). Over 200 delegates and 40 speakers from industries, regulatory authorities, policy makers and investors from across the South Asian Region are participating in the Conclave. Removing infrastructure gaps in the region is essential for building a sub-regional framework, which will provide a seamless market, facilitate effective exploitation of synergies, and generate billions of dollars of new output, thus making South Asia the new powerhouse of global economic activity, Mr. Mukherjee added.

He also emphasized on the need to undertake Public-Private Partnership (PPP) approach in infrastructure development, as such projects are highly capital intensive and public funds alone can not meet entire requirement. PPP would forge a collaborative relationship between the public and private sector with a view of bridging the financing gap and maximizing output. The success of PPP models depends on a suitable policy and regulatory framework, which responds to the challenges, such a model throws, said Mr. Mukherjee.

Infrastructure regulators have a critical role to play, in terms of ensuring that user interest are not prejudiced, and contracts between sponsoring agencies and private parties are honored. Sectoral regulators should create ground-rules, which mimic conditions of competitive markets, so that resources are utilized optimally, user charges are fixed in a reasonable manner and standards of efficiency are maintained at high level. Regulators should also ensure adherence to universal service obligations, emphasized Mr. Mukherjee.

Mr. Mukherjee also noted the evolution and growth of SAFIR, which provides an excellent forum, where regulators members from various South Asian countries can share experiences and best practices in meeting regulatory challenges and evolving coherent and co-ordinated responses.

Mr. Sushil Kumar Shinde, Union Minister of Power, GOI, in his address emphasized that rapid investment in infrastructure sector in South Asian countries is pre-requisite for region’s socio-economic development. Suitable regulatory regime is crucial to the development of infrastructure. Forums like SAFIR will build capacity of regulatory agencies by sharing experiences and best practices. Government of India is committed to support such forums, he added.

Mr. Shinde, while referring to Indian energy sector, mentioned that the cost plus approach would be adhered to only certain limited cases of natural monopoly such as gas-supply and electricity transmission sector. In other sectors, market based competition would be promoted. He also highlighted the success of Ultra Mega Power Projects (UMPP) model in India. The success of UMPP was due to very supportive regulation and policies and provision of transmission linkages, third-party sale facility and access to fuel resources.

Dr. Pramod Deo, Chairperson, CERC & Member, Executive Committee, SAFIR pointed out that SAFIR was born 10 years ago and recently, it has been decided to upscale and strengthen SAFIR activities. He also mentioned that so far SAFIR membership-base is largely from Power and Petroleum sectors. However, efforts are on to increase the participations from other sectors such as telecom, roads, airports, ports and urban infrastructure.

Mr. Subodh K Bhargava, Past President, CII & Chairman, CII South Asia Committee and Chairman, Wartsila India Limited in his welcome remarks highlighted the need to create an overarching regulatory framework in infrastructure sector. He called for enactment of National Infrastructure Regulatory Bill, which is a long-standing demand of CII. 

India Needs Rs.6000 CR. P.A. of Imported Power Equipment : Assocham
Delhi, November 03 2009: Indian power industry will have to spend about Rs.6000 crore annually on purchase of power equipment through imports if it has to add 14,000 MW of generating capacities every year as intended by government since domestic availability of such equipment is not beyond worth Rs.2000 crore, says a Report brought out by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).
The report namely Power Industry : Why it is failing? highlights increased dependence of domestic industry on imported power equipment as it is estimated that equipment worth Rs.8000 crore would be required every year to put up power projects in thermal sector.
Bharat Heavy Electricals Ltd., the largest equipment manufacturer is unable to meet all demand for equipment with surge in power generation projects under construction, says the ASSOCHAM President, Dr. Swati Piramal.
While releasing findings of the report, Dr. Piramal pointed out that BHEL is scaling up its generator ratings from 500 megawatt to 660 megawatt and even above to meet demand for new technologies and is stated to be planning for making super critical steam generation equipment that improves conversion efficiency. It’s total capacity is also to be raised from equipment 6000 megawatt a year to 10,000 megawatt, meanwhile import will become inevitable as projected above and create huge prospects for investors in power sector especially from overseas part.
This itself reveals yet another area for investors which does not include the expected surge in nuclear power generation capacities to be setup in next few years for which also equipment would be required on a mega scale.
As per current plans set for nuclear power generation of 10,000 megawatt, by 2020 has been raised upto 20,000 megawatt after nuclear fuel deal was signed and could even reach 40,000 megawatt. The rapid expansion of power sector would also create a huge demand for manpower, points out the Study.
The big push in further (thermal) power generation would no doubt come from the leading public sector company in the sector, NTPC. Its existing generation capacity is a huge 30,644 MW. It plans to add 22,400 MW during the 11th Plan, that is as much as 28 per cent of additional generating capacity would come from this public sector major.
The private sector was to add 10,760 MW calling for an investment of Rs. 43,000 crores. After the recent events that have raised the private sector confidence in government’s determination to fast track and expand power generating (and related transmission, distribution) capacity, and revival of the market conditions, the private sector is now in a big way in this area.
The Chamber has pointed out that India’s first and foremost needs to reduce the cost of generation from the high of 8 to 10 cents per unit as an early goal to reduce costs across the board in the economy. The power sector reforms, properly fashioned and implemented could, like in telecom, is a big step in making growth truly inclusive because the level and cost of energy usage will determine the whole range of issues in the economy of the country.
The Chamber has also recommended a comprehensive electricity production market that pays the full global cost of fuel will help eliminate inefficiencies in the current monopolistic state electricity supply system. Open access must be expeditiously operationalized by each State Regulatory Authority notifying a rational/ reasonable cross-subsidy. With a competitive electricity sector the increasing trend in the use of diesel Gen-sets could be reversed.
In addition, the Atomic Energy Act needs to be amended to permit private corporate investment in nuclear power, subject to regulation by AERB and AEC. Rules for private and foreign entry are to be framed. 

Industry News: 12th Oct- 18th October 2009

Sales of White Goods & Appliances to Be Up By 40% in `09 Diwali : Assocham
Delhi, October 15 2009: Sales of consumer goods, electronics products and home appliances in 2009 Diwali is likely to go up by about 40% due to factors like resumption of recovery in this segment, availability of liberal sales discounts coupled with easy financing facilities from banking institutions to buyers of such products.
The aforesaid findings have been arrived at ASSOCHAM after obtaining information from manufacturers of Consumer durable products on Anticipated Sales of their Products during 2009 Diwali, which include Videocon and other multinationals like LG, Samsung, Sony, Panasonic, Philips etc.
Releasing its findings, the ASSOCHAM Secretary General, Mr. D S Rawat said that manufacturers of consumer & electronics products including home appliances this year resorted to conservative forecasting methodologies for sales of their products, which is turning true to an anticipated expectation of 40% increase in their sales.
Mr. Rawat said that the IIP figure for the month of August clearly indicated that consumer durable segment has grown by over 23% and it will continue to record similar growth and even a little more for next 2-3 months. This is because the manufacturers of white goods, consumer and home appliances will continue to receive schemes announced for Diwali in an extended form.
2008 being a year of severe economic downturn, manufacturers of white goods and consumer appliances set ambitious targets to increase their sales during Diwali by 25%. The result was, the sales grew by just 15%. In 2009 being the year of recovery, the manufacturers resorted to conservative planning and expected sales of consumer durable products increasing by nearly 40% which is coming true as per feedback given to ASSOCHAM by its constituents, said Mr. Rawat.
The higher sales of consumer products in 2009 Diwali is also as a result of initiatives taken by the government in improving income levels of its employees by implementing 6th Pay Commission report, second installment of which have just been released. This is likely to benefit 5 million government employees and put additional purchasing power in their pockets.
Bharat Nirman programme is another initiative of the government through which purchasing power for buying consumer products is being put to rural folks.
In addition to that, Employment Guarantee Scheme of UPA government is also contributing to increasing wages of rural folks, part of which is going towards purchases of consumer durables. It is because of all this reasons that the sales of consumer durables during 2009 Diwali is rightly anticipated to increase by 40%, concluded Mr. Rawat. 
CII to Partner with SATTE 2010
Delhi, October 14 2009: CII is partnering with SATTE to organize “SATTE 2010” between 28 – 30 January 2010 at Pragati Maidan, New Delhi.

In his opening remarks at the Press Conference organized here today, Mr Chandrajit Banerjee, Director General, CII mentioned that CII and SATTE have decided to join hands for SATTE 2010 to create new stimulus in the travel and tourism business by synergising their separate and mutual efforts which will bring great incremental value for Indian tourism at large. He further added that this is for the first time that CII is partnering with a private body in this sector for organising an event.

Speaking on the occasion, Mr Navin Berry, Chief Coordinator, SATTE said that this partnership with CII would add critical differentiators and added that the event would have various components such as SATTE exhibition, Investour, National Business Travel Conference and MICE buyers.

It was also mentioned at the Press briefing that this partnership between CII & SATTE would help in resolving number of issues impacting the growth of tourism sector in India. 
Remove VAT On Fashion Products, Of More Than 50% Handloom, Handicraft Input: Assocham
Delhi, October 14 2009: The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has urged the Finance Ministry and the Empowered Committee on VAT to remove the Value Added Tax (VAT) on products of fashion, especially with more than 50% handloom and handicrafts input to make them competitive in the global market.
In a representation sent to Finance Ministry and Empowered Committee on VAT by ASSOCHAM Secretary General, Mr. D S Rawat, it is stated that Indian fashion industry is at budding stage and accounts for barely 0.3% of international industry’s networth, which may further come down in the absence of necessary government support.
Currently, fashion products that fall under VAT net ranging between 8-12% and make them costlier and thus dilute their competitiveness, the ASSOCHAM has thus emphasized need for removal of VAT on fashion products, having more than 50% handloom and handicraft input.
The Chamber has argued that the fashion design industry in India is extremely fragmented and unorganized even then it is expected to touch over Rs.800 crore of turnover in next 2-3 years. The present estimated level of fashion design industry is around Rs.300 crores.
Mr. Rawat said that the current market scenario and market dynamics of the designer wear industry in India finds it difficult to build concept and implementation of roadmap for setting up a successful, self-sustaining fashion hubs in India and therefore, the government support to it is the need of hour especially in the form of tax incentives and also need funding assistance.
The ASSOCHAM has also come out with a roadmap for creation of fashion hub which can be possible by implementation of roadmap to be jointly prepared by industry and government with strategic approach for short, medium and long-term.
The ASSOCHAM has recommended that the suggested fashion hubs could be set up provided India looks at successful models of setting up and running fashion hubs in different countries such as USA, France, South Africa, also in emerging markets like Dubai.
Relevant elements could be taken to develop the fashion hub in areas with maximum participation from the government since there are many examples where the government is promoting fashion industry such as France, Japan, Hongkong, USA etc.
In view of ASSOCHAM, the suggested fashion hubs should be set up as an special purpose vehicle (SPV) model under Companies Act. The land should be identified and purchased by the SPV before government puts it in its contribution as equity or grant.
The government equity and grant could be limited to 20% of project costs including facilities like health, spa, hotel and guest fitness centres, subject to a maximum of Rs.20 crore.
Government equity should be released in 4 equal instalments subject to equal contribution having been made by SPV after purchase of land, said Mr. Rawat. 
Reduce Repo & Reverse Repo Rate By 50 Basis Points : Assocham
Delhi, October 13 2009: Besides, ensuring availability of equitable tax code with focused approach towards quick disinvestment of profit making PSUs to contain fiscal deficit, India also needs to reduce repo and reverse repo rate by another 50 basis points to enable industry access liquidity at reasonable interest rates, says newly elected President of ASSOCHAM, Dr. Swati Piramal.
Addressing her first Press Conference here today after becoming President ASSOCHAM with its Secretary General ASSOCHAM, Mr. D S Rawat, Dr. Piramal said, “quick disinvestment of profit making PSUs is necessary as it will immediately help soften interest rates and assist fiscal management. Disinvestment in PSUs can raise Rs.30,000 crore”.
In addition, Dr. Piramal also demanded a new financial policy to draw household and corporate savings into investment with a target of Gross domestic capital formation to be raised to 40% of GDP in 3 years from 2006-07 level of 35.9%, overcoming fall in this ratio in financial year 2008-09.
She emphasized the need for equitable, effective, efficient tax code in a simplified manner so that India does not follow asset based taxation and hurt its fiscal growth, especially for capital intensive and infrastructure industry with long gestation period.
According to newly elected President of ASSOCHAM, interest rates across the whole economy should be stabilized between 4% to 6% with user end interest rate on agriculture and allied investments at 4%. Housing loans should be not more than 6% for all houses, costing below Rs.30 lakh.
Referring to financial sector reforms, Dr. Piramal said that these should include setting up an independent banking regulator, stronger monitoring of credit by RBI with enhanced powers, curbs on indiscriminate consumer credit, promotion of mobile banking in remote areas, banking regulator to monitor and regulate government borrowing, management of public debt and credit disbursement.
RBI should be only the central banker and banker to government while regulatory and policy function to be exercised by a high power banking regulatory authority. This authority should also take steps to block sub-prime and crony lending through periodic enquiries into lending practices and war.
On issue of fast track projects such as National Highways Development Projects, dedicated freight corridors, ports and airports, Dr. Piramal emphasized the need for single window agency so that massive investments flow into them and are executed in time bound manner.
Dr. Piramal also said that food processing industry should be recognized as hi-tech industry and the government should facilitate establishment of Model Agro Processing Centres. Assurance of long term farm policy are required with commitment to promote farmer-industry interaction and development of efficient supply chains to connect farmers to urban consumers and processing industry.
Agriculture management should become central to moving farming from tradition to a steadily income generating activity. Promotion of corporate farming, using land as a share and business like farming practices need to be promoted.
The ASSOCHAM also emphasized the need for widespread reforms in power sector and expansion of integrated energy use to ensure uninterrupted, quality power to all through provisions of Electricity Act 2003, enforcing consumer choice and competition in electricity supply taking a lesson from the impact of telecom reforms.
There are many States that are not granting open access to the power generators and force them to supply power to the state grid at an arbitrary price. This is providing to be a big dis-incentive to fresh investments in the power sector. The Electricity Act 2003 needs to be suitably amended. 
Sheila Dikshit to flag-off CII Run & Walkathon on World Food Day
Delhi, October 13 2009: he Confederation of Indian Industry (CII) is commemorating the World Food Day with the theme, ‘India prepares for Commonwealth Games 2010’. CII Institute of Quality in association with Ministry of Food Processing Industries and Delhi State Government plan to celebrate World Food Day in New Delhi and across the country on 16th October 2009. Chief Minister of Delhi Smt Sheila Dikshit, will be flagging off a Run & Walkathon on 16 October 2009.

More than 2000 people from various walks of life – school children, NCC cadets, Army, senior citizens etc., would be participating in the Walkathon at India Gate on the morning of 16 October. To create awareness on Food Safety and Quality, various food companies would be distributing health food and energy drinks at the Walkathon. Food Nutritionists would be present in the program to provide guidance on and safe & healthy food.

World Food Day is celebrated every year around the world on 16 October on the date of the founding of the Food and Agriculture Organization of the United Nations in 1945. The aim of the CII event is to position Delhi as a Safe Food destination before the upcoming Commonwealth Games, enhance customer consciousness and understand Consumer Rights. It will also provide know-how to Education Institutes, Consumers & Industry to maintain high standards of hygiene.

Offering hygienic and quality food would be one of the key constituents in making India a perfect host for CWG 2010. In order to further this endeavour, CII intends to educate food vendors and consumers alike on the need for the same and is actively looking at setting quality, health and hygiene standards for eateries and restaurants.

A session scheduled on the 16th October 2009 sets the stage for the World Food Day by releasing “CII Food Safety Rating Matrix for Eateries (CFSRM)’. Key speakers during the sessions include Mr Uttam Chatterjee, Chairman CII Expert Group on Food Safety and Quality, Dr Shikha Sharma, Co Chairman Health care Yi, Mr R.K.Tandon , MD Indian Railways Catering and Tourism Corporation Ltd, Mr V.N Gaur, CEO, Food Safety Standard Authority of India, Mr Sanjeev Kapoor, Celebrity Chef, Ms Meena Kapoor, Food and Agriculture Organization of the United Nations, Shri Subodh Kant Sahay, Union Minister of Food Processing Industries, Government of India and Mr K N Shenoy, Chairman, CII Institute of Quality. 
Uniform Land Acquisition Policy Needed For Steel Plants : Assocham
Delhi, October 12 2009: The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has sought intervention of Prime Minister office to direct the Ministry of Mines to evolve a uniform policy under which steel makers put up steel plants in all iron ore rich states such as Orissa, Chattisgarh and Jharkhand.
In a representation to the Prime Minister Office, Mr. D S Rawat, ASSOCHAM Secretary General said that different states having iron ore reserves have their policies for land acquisitions with variety of plans to develop their locations which are contradictory in nature.
As a result, the steel manufacturers have to pursue one direction in one particular state and different in other states, which cause problems in execution of their projects and add to costs, further pointed out Mr. Rawat.
Citing an example based on feedback received from ASSOCHAM members from steel sector, the ASSOCHAM said that many of industrialists that wanted to put up huge capacity steel plant in state of Orissa have difficulties in acquiring land.
After land acquisition, one of its members faced resistance from local populace during Bhoomi Puja and had to virtually abandon the site to escape mob attack which delayed its projects and sent out wrong signals, said Mr. Rawat.
These kind of happenings take place in the absence of suitable and uniform mining policy under stipulations of which, the manufacturers can go ahead with their project planning.
In order to avoid recurrence of such incidents particularly in tribal dominated states like those of Orissa, Jharkhand and Chattisgarh, the central government in consultation with state concern should immediately put in place a policy to direct the prospective investors to execute their investment plans so that no untoward law and order situation arise and industrial investments are carried out in a peaceful and friendly manner.
The minerals source, according to ASSOCHAM is a national wealth and should be used in countries interest in an equitable manner in which local dominance should not come on way for narrow economic gains and ulterior political objectives.
The Chamber has therefore underlined the need for uniform policy that can allow free movement of natural resources within the country in the absence of which the ASSOCHAM is of the view that the country might push itself to its bulkinasation.
In view of ASSOCHAM, the uniform policy for steel manufacturers to put up their respective steel plants would create industrial climate for double digit growth as steel makes for a sector which constitute a substantial element for infrastructure sector.
Mr. Rawat expressed hope that the Prime Minister office will take proper note of what has been represented to it in interests of steel makers in particular and country as a whole. This will facilitate industrial development of such states as are richly endowded with natural resources like iron ore to suit the national as well as local requirements. 
Rising IIP Indicative Of Sound Recovery : Assocham
Delhi, October 12 2009: Index of Industrial Production (IIP) rising to 10.4% in August 2009 only suggests resumption of recovery in the Indian economy, especially in its mining, manufacturing and electricity sector, says Mr. D S Rawat, ASSOCHAM Secretary General.
Henceforth, the IIP would start moderately going up and recovery becoming much more pronounced and visible to enable India embark on the growth path it intends to achieve in current fiscal and thereafter.
Capital goods industry would gradually come out of the recessionary mode and even power, petroleum, engineering would record a good growth in times to come, said Mr. Rawat. 
“Doing Business in Malaysia Handbook” another step to further strengthen India Malaysia relations
Delhi, October 12 2009: To facilitate a closer economic and commercial partnership between the two countries, the Confederation of Indian Industry (CII) in cooperation with the High Commission of India, Kuala Lumpur, have taken the initiative of bringing out the publication – “Doing Business in Malaysia: Handbook for Indian Business”.

The official launch of the book is scheduled at an event in Kuala Lumpur on 12 October 2009 by H. E. Dato’ Seri Abdullah bin Haji Ahmad Badawi, Former Prime Minister of Malaysia.

Economic relations between India and Malaysia have greatly strengthened in the last few years thus making Malaysia India’s second largest trading partner in the ASEAN region. Bilateral trade reached a record level to nearly USD 8.5 billion in 2007-2008 and bilateral investments in both directions have also been steadily rising. Economic cooperation in other areas such as services trade, education, infrastructure projects, tourism, etc. has also intensified.

The book is a practical guide for Indian enterprises keen to look at opportunities in Malaysia. It highlights expanding trade and investment potential for India and Malaysia, and outlines key aspects of the climate for doing business. The publication will be useful to Indian businesses in pursuing economic and commercial ties with Malaysia, and also to explore the larger ASEAN market with Malaysia as a hub.

It would also help in further generating interest in India and Malaysia on existing opportunities and complementarities in trade and industry between the two countries and identify synergies between India and Malaysia where industry could chart future initiatives. The book will be widely distributed in Malaysia and in India. 
Economic Upturn for MSMEs round the corner : CII MSME Outlook survey
Delhi, October 12 2009: Present and Past MSME Outlook: The second quarter of the year 2009 – 2010 (July – September) may be the upturn point for the Indian Micro, Small and Medium Enterprises (MSMEs), according to the MSME outlook survey, conducted by the Confederation of Indian Industry (CII).

The survey analysis for the second quarter of 2009 – 2010 (July – September), highlighted that 45 percent respondents registered an increase in their turnover, 42 percent respondents registered an increase in their production, 38 percent registered an increase in their order booking vis-à-vis the first quarter of 2009- 2010.

Earlier during the first quarter of 2009- 2010, 37 percent of respondents registered an increase in their production and inventory, however, simultaneously while assessing the performance of turnover and profitability on MSMEs , 42 percent and 43 percent respondents registered a decline in their turnover and profitability respectively, vis-à-vis the last quarter of 2008-2009, according to the CII MSME outlook survey.

The positive shift in (turnover & order booking) the second quarter of 2009-2010 vis-à-vis the first quarter may be attributed to the “Trickle down affect” of the various measures announced as part of the stimulus packages announced by the Government of India & the Reserve Bank of India, during the December 2008 & January 2009.

It may be recalled that the First stimulus package included measures such as the Reduction in CENVAT by 4 %, Interest rate cut of 0.5% for Small and 1 % for Micro enterprises by PSU banks, Export support by interest subvention of 2 %, Reduction in lock in period under Credit Guarantee scheme from 24 to 18 months and Additional Plan Expenditure of Rs 20,000 crores. Also the Second stimulus package included initiatives such as restoration of DEPB rates prior to Nov 2008 till 31 Dec 2009, Duty Drawback benefits for certain products like bicycles, agricultural hand tools, and specified category of yarns with retrospective effect from 01/09/2008, which were expected to have a beneficial impact for the MSMEs.

At the same time, initiatives such as Special Monthly meeting of State Level Bankers Committees (SLBC) to look into the matters between MSMEs and Banks not resolved within a fortnight, Enhancement in the Guarantee cover under Credit Guarantee scheme from 50% to 85% for loan up to Rs 5 lacs and Rs 5,000 crore RBI credit to EXIM Bank for pre and post shipment credit, were also expected to have a beneficial impact and contribute towards easing the liquidity for the MSMEs.

Future MSME Outlook: The positive sentiment built up in the second quarter of 2009 – 2010 is expected to carry forward into the third & the fourth quarter of 2009-2010, as revealed by the MSME Outlook survey.

An assessment of the expectations of the MSMEs for the third quarter (October December) of 2009 – 2010, further revealed that , 54 percent respondents expect an increase in turnover , 43 percent respondents expect an increase in production and 45 respondents expect an increase in their order bookings. Also 31 and 37 percent of respondents expect an increase of their export and profitability, respectively, vis-à-vis the second quarter of 2009-2010.

Finally an analysis of the expectations of MSMEs in the last quarter of 2009- 2010, revealed that 51 percent of the respondents expect an increase in their turnover, 43 percent of the respondents expect in their turnover and 40 percent of the respondents expect an increase in their order bookings.

Factors inhibiting the growth and development of MSMEs in India
As part of the MSME Outlook survey, an analysis of various factors that inhibit the growth and development of MSMEs in India, revealed that the Ten (10) key issues, that entrepreneurs found as the major impediments to their growth, in order of decreasing priority are Delayed payments, High cost of credit, Lack of availability of credit, Absence of Government support for growth, Lack of availability of risk capital, Complex indirect tax structure & lack of understanding on the forthcoming GST, Norms for collateral/margin requirements, Infrastructure bottleneck, Absence of preference for being a part of the supply chain for the Government, Compliance with labour laws, Non transparent credit appraisal norms and Lack of usage of Information and Communication Technology (ICT).

Mr Salil Singhal, Chairman, CII National MSME Council observed that it appears that the worst of the crisis period is over and a turnaround seems within sight for most of the industry. He added that CII had submitted a Development Agenda for the Indian MSMEs, to Dr Manmohan Singh, Hon’ble Prime Minister of India. This was followed by the constitution of a High Level Task Force force, under the Principal Secretary, in the Prime Minister’s Office (PMO), to look into the issues being faced by the MSMEs. 
Remove Provisions to Tax Capital Gains on Indirect Transfer of Assets in Tax Code : ASSOCHAM
Delhi, October 11 2009: The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has urged the Finance Ministry to remove provisions in its draft Direct Tax Code to tax capital gains, arising on indirect transfer of Indian assets.
In a representation submitted to Finance Ministry, ASSOCHAM spokesman has stated that this can have serious implications in various international transactions like cross border mergers and transfer of Indian shares including ADRs and GDRs in foreign capital markets.
Likewise, the grandfathering provisions have also not been introduced for all deductions and exemption existing under current law like, for Life Insurance Scheme, PPF, Pension/superannuation fund etc.
Moreover, provision for grandfathering in the area of tax incentives for special businesses like power, infrastructure etc. is actually not effectively available because it is restricted to expenditure deductions, although it was provided for in the current tax laws. Therefore, the huge uncertainty in Indian tax laws will result in affecting future investments, pointed out the Chamber.
The ASSOCHAM has also demanded adoption of international best practices in the direct tax code, highlighting that asset based taxation is not prevalent in any of the developed or developing countries. The countries where it was introduced include Argentina and Nicaragua. In fact, in those countries, there was compulsion for introduction since there was hyper inflation of over 400% requiring an alternative method of taxation. Even then, the companies were given the option to pay tax linked to assets or profits, whichever was lower.
The Chamber has also pointed out that MAT as proposed in the Tax Code is more in nature of wealth tax to be paid by even loss making companies, companies yet to start business and even on assets yet to be put to use. This will have a significant impact on cash flow, thereby hurting fiscal growth, especially for capital intensive/infrastructure companies with long gestation period.
In addition, it is also proposed in the code that each and every business will be required to compute their total taxable income separately regardless of whether such business enjoys any tax incentive or not. This will increase the compliance cost, maintaining separate books of accounts etc. It is not clear what is sought to be achieved with this.
In view of ASSOCHAM, the provisions of Direct Tax Code digress the principle of equity and fairness. A case in example is whereas delay of one day in filing of tax return will result in disentitlement of all brought-forward losses, rectification application is treated as rejected if the order is not passed within 6 months. If the advance tax has been paid, then what is the big issue if return is delayed. Further, notices/orders would be deemed to have been served on the fifth day, whether received or not.
This provisions can be misused as under the garb of preventing misuse in an isolated case, tax laws should not contain draconian provisions. Is it expected that the assessee cannot make any mistake, when at the same time, the department has all opportunities for corrective action. Administration should work towards generating trust among the taxpayers of being just & fair.
The Code also seeks to tax all receipts like customer advances, security deposits, profit on sale of capital assets etc. However, neither deduction for related capital expenditure is permitted nor the security deposits are allowed to be deducted at time of refund. The profit on slump sale is taxed in the year of sale whereas loss written off only through depreciation.

Industry News: 1st October- 10th October 2009

Top CFOs to Gather at naseba’s 3rd Annual CFO Strategies India Forum on October 12-13, 2009 in Mumbai
Mumbai, October 9 2009: More than 100 CFOs from the leading companies of India will gather at the third annual CFO Strategies India Forum on October 12-13 at Hyatt Regency in Mumbai. The forum, now in its third annual is aimed at addressing the key challenges and the day-to-day needs of CFOs from India during the current global economic turmoil.
The exclusive event will have keynote presentations by prominent industry leaders; interactive panel discussions on strategic topics for CFOs, and workshops tailored to educate and enhance CFO skills. The 3rd Forum will include case studies conducted by thought leaders and industry visionaries and will feature panel discussions that share strategies for diversifying risks and improving internal efficiencies.
“We are proud to host the 3rd edition of CFO Strategies India forum this year welcoming the leading CFOs across the country. We believe that an event of such a high profile will be an ideal platform to discuss the latest trends and opportunities in the changing economic environment and we look forward to another successful edition of CFO India,” said Ali Shahid, Event Producer, naseba.
KPMG has partnered with naseba to host IFRS Workshops at the Forum in Mumbai. KPMG’s workshops at the Forum will focus on IFRS adoption, convergence, implementation and best practices for accelerating business development. CFOs will receive practical insights on IFRS implementation – its advantages and challenges for Indian companies. The Forum will focus on issues related to information security, business performance management, risk management, enterprise resource planning, business intelligence, mergers and acquisitions, financial consulting, tax advisory and more.
naseba has announced the industry experts that will be speaking at the Forum they include: Professor N. Balasubramanian, Chairman of IIMB Centre for Corporate Governance and Citizenship, Indian Institute of Management – Bangalore; Jamil Khatri, Head Accounting Services, KPMG; B.R. Jaju, Director and CFO, Welspun Gujarat; Rajeev Wagle, Group CFO, UTV Group; D.R. Dogra, Managing Director, Credit Analysis and Research Limited; D.K. Sundar, Executive Vice President – Finance & Legal, Rallis India; Marcus Cacajacob, VP International Affairs, Economic Promotion Canton Schaffhausen; S.S. Ranjan, Deputy Managing Director & CFO, State Bank of India; Dr. M.P. Agarwal, CMD, Lakshmi Cotsyn Limited; Marc Rudolf, Director, Greater Zurich AG; Manoranjan Sharma, Chief Economist and DGM, Canara Bank; Rajesh Magow, Co-foundeR & CFO, MakeMyTrip.com; Abraham Mathews, CFO, Infosys BPO; Dr. Paritosh C Basu, Group Controller, Essar Group.
Top corporations will be showcasing their solutions at the Forum including KPMG, Care Ratings, SAP, Greater Zurich AG, Sybase Software India and Zycus Infotech. 
‘India has great potential for business with United Nations’ United Nations Procurement Division
Delhi, October 8 2009: Confederation of Indian Industry in association with United Nations and the Department of Industrial Policy and Promotion, Government of India today organized an interactive session in Delhi on Doing Business with the United Nations – Vendor Registration and Development programme. The primary objective of this session was to create an interactive platform between UN Procurement Division (UNPD) representatives and Indian business houses in order to encourage and increase participation in the United Nations Global Marketplace initiatives.

Mr A K Kaul, Past Chairman, CII Delhi State Council & CEO, Horizon Industrial Products Pvt Ltd, welcomed the participants and the dignitaries to the session and emphasized the need for Indian companies to participate in business opportunities with the United Nations. The session was addressed by Mr Paul Buades, Director, UNPD, Ms Neeru Singh, Policy & Best Practices Officer, UNPD and Mr Abiye Degafie, Procurement Manager, UNICEF India. These UN representatives educated the Indian companies present about the various business opportunities with United Nations agencies and the registration process in order to be eligible to bid for these opportunities.

“The United Nations is a mosaic of different organizations with various mandates. There are innumerous business opportunities in various sectors ranging from pharmaceuticals to air transportation services and from banking and financial services to food. Registering with the United Nations Global Marketplace will allow eligibility to participate in these various requirements and partner with UN agencies”, said Mr Paul Buades. Highlighting ethical values and professional attitude as critical selection factors in addition to meeting technical and other evaluation criteria, Mr Buades, stressed on the 4 principle guidelines of the UN procurement system. These guidelines are best value for money, fairness – integrity and transparency, economy and effectiveness and meeting UN objectives.

Speaking specifically about doing business with India, Mr Buades said that contribution from Indian vendors has reduced significantly from 2003 to 2008. However, encouraging more participation, Mr Buades said, “We have a mandate to promote business with developing countries and we believe that India has great potential, with respect to its domain specific expertise and diverse industry sectors”

Mr Abiye Degafie, stressed on specific requirements of UNICEF and highlighted the work done by the organization across the world in the area of children’s rights. Speaking about the Millennium Development Goals of UNICEF, Mr Degafie said that child health and related areas are a high activity sector for UNICEF. He said that India is one of the top most vendors for UNICEF. “India has been the largest supplier of hand pumps and tools and services to UNICEF in 2008”, he added.

Ms Neeru Singh took the audience through a step-by-step process of the pre-registration and registration process in order to secure eligibility to bid for contracts with more than 20 United Nations agencies. “The registration process is free of cost and completely hassle free and gives a vendor access to all information about UN activities and requirements. We invite all interested members to register themselves with United Nations and benefit from the opportunities”, she said.

The session was well attended by a number of leading Indian companies from diverse sectors.

The programme was held at Mumbai on 6,7 Oct and is presently being conducted in Delhi on 08, 09 Oct 09 . It is also scheduled for 12, 13 Oct at Hyderabad to ensure that all interested companies get an opportunity to participate. 
‘Energy Expo 2009’ and ’India Energy Conclave 2009’: CII’s International Exhibition and Conference to begin in Ahmedabad
Delhi, October 8 2009: CII’s Flagship 4th International Exhibition, ‘Energy Expo 2009’ is being held in Ahmedabad during 9-11th October, 2009 and ’India Energy Conclave 2009’ on 9 October 2009, under the chairmanship of Mr Sudhir Trehan, Managing Director, Crompton Greaves Ltd.

The event is supported by Ministry of Power, Government of India and Government of Gujarat is the Host State.

Energy Expo 2009 has shaped up extremely well and the exhibition space is fully sold out. Energy Expo 2009 is sponsored by the leaders in the Energy sector including WinWinD, Suzlon,, ACME, Aggreko, Quippo Rental Energy, Forbes Marshall Enercon India and Adani Power.

Key confirmed exhibitors are ABB, Crompton Greaves, Vestas Wind, Max Watt Energy, Kenersys, GEA Ecoflex, Regen Powertech, Clarke Energy, Kawasaki Turbines, DB Power Electronics, Petronet LNG, GSPC, GEDA, GUVNL, Elecon Measurements, Industrial Boilers, Gujarat Paguthan Energy, Tata BP Solar, Moser Baer, GMMCO, MTU Turbines, Ghodawat Energy,Strack GmbH, Germany, Tesy SRL, Italy, to name a few.

Concurrent to Energy Expo 2009, Captains of Indian Industry from Energy Sector, senior Government officials will address the ’India Energy Conclave 2009’ and also join at the inauguration of the Energy Expo 2009.

Some of the eminent speakers are : S Jagadeesan, IAS, Principal Secretary, Energy and Petrochemicals Department, Government of Gujarat, Mr Sudhir Trehan, Managing Director, Crompton Greaves Ltd, Nitin Shukla, Group Chief Executive Officer, Shell Hazira Gas Pvt Ltd, Naushad Forbes, Chairman – CII Western Region and Director, Forbes Marshall Pvt. Ltd, Prasad R. Menon, Managing Director, The Tata Power Company Ltd, Pranav Adani, Chairman, CII Gujarat State Council and Managing Director, Adani Wilmar Ltd, Pradeep Bhargava, Managing Director, Cummins Generator Technologies Ltd, P V Krishna, Vice President – Power Plant, Wartsila India Ltd, B Chandrasekar , Vice President – Marketing, WinWinD, India, Alok Das, Head – Business Development Gujarat, Suzlon Energy Ltd, Amulya Charan, Managing Director, Tata Power Trading Company Ltd, Partha S Bhattacharyya, Chairman, Coal India Ltd, D J Yadav, Convenor, CII-Gujarat Environment Panel and Chief Executive Officer – Project Management Arvind Ltd & Arvind Accel Ltd, Manoj Kumar Upadhyay, Founder & Managing Director, ACME Tele Power Pvt. Ltd, Hemant Pincha, Managing Director, Quippo Energy Pvt. Ltd, Kaustav Mukherjee, Partner & Vice President, A T Kearney Ltd.

Energy Expo 2009’ and ’India Energy Conclave 2009’ international exhibition and Conference will also witness an exclusive report Release of CII- A T Kearney Report on “Sustaining Growth – Future of Indian Power Sector”.
CII – A T Kearney Report present an insight on the changing outlook for the power sector from generators perspective and clearly highlights the key success factors for the future. The Report also presents emerging perspectives across all major fuel types viz. thermal (Coal & Gas), Hydro, Nuclear and Renewables. It also highlights the change in market dynamics in terms of demand-supply, regulations and operational challenges. I trust this Report will serve its objectives and you all will have meaningful gains.
Energy Expo 2009 will focus on key issues in the Energy sector interalia Power, Coal, Gas, Renewable Energy, Non-Renewable Energy, Clean & Green Energy, Power Transmission and Distribution equipments and Financing Options.

Energy Expo 2009, which has now become one of the leading events for the Energy sector in India, shall prove to be an excellent opportunity for the exhibitors and business houses. Over the years, Energy Expo 2009 has shaped up extremely well and has received encouraging response from all parts of India. It has already received participation of over 108 companies.

For sourcing your energy requirements, Energy Expo 2009, will be an excellent platform to see the latest products, energy efficient devices and services, which will greatly help to reduce electricity costs thus improving the bottom line in this difficult times. The event will help the professionals to be abreast with the latest technologies available in the energy sector.

Apart from Ministry of Power, Government of India and Government of Gujarat (Host State), CII’s Energy Expo and India Energy Conclave are also supported by Bureau of Energy Efficiency (BEE), Cogeneration Association of India (COGEN INDIA), India Energy Forum, Indian Electrical and Electronics Manufacturers Association (IEEMA), Indo French Chamber of Commerce & Industry (IFCCI), Indian Renewable Energy Development Agency Ltd (IREDA), Indian Transformers Manufacturer Association (ITMA) and Indian Wind Energy Association. 
Aruba Networks Appoints New Sales Director for India
Delhi, October 8 2009: Aruba Networks, Inc. (NASDAQ: ARUN), a global leader in 802.11n wireless LANs and secure mobility solutions, today announced the appointment of Shalendra Singh as its Sales Director for India. Mr. Singh will be based in New Delhi and lead sales, partner, and reseller operations throughout India.
Mr. Singh brings with him over 15 years of IT and networking experience in the United States, Asia, and India. Prior to Aruba, Mr. Singh was the Vice President of Sales and Business Development at O-Zone Networks in India. He has also held key roles at IBM India, PeopleSoft Singapore, and webMethods.
Enterprise users are increasingly mobile and need secure access to business-critical information from anywhere within or outside the office. Aruba’s secure Wi-Fi solutions deliver that mobility, enhancing user productivity, resource utilization, and operating efficiency. By displacing overbuilt wired networks with streamlined wireless access, Aruba enables enterprises to rightsize wired infrastructure and lower operating, service, and labor expenses. These benefits extend to branch offices and teleworkers, for which Aruba’s remote networking solutions are refreshingly simple to use, offer military-grade security, and can be centrally managed with minimal IT overhead. With the option to use 3G cellular or other broadband connections, users can connect to the enterprise instantly from anywhere.
“The wireless market in India is experiencing tremendous growth, and we believe a seasoned executive manager is essential in order to navigate the many potential opportunities and spur growth,” said Albert Tay, Aruba’s Regional Managing Director for ASEAN & India. “We have invested heavily in the region, both in our Bangalore research and development center and a growing network of national sales representatives. Shalendra will be invaluable in driving new business and supporting our large and growing base of existing customers. 
National income likely to suffer $160 bln loss due to strokes & diabetes : ASSOCHAM-PWC
Delhi, October 7 2009: An anticipated loss of $ 160 billion is estimated to Indian national income due to increasing heart diseases, strokes and diabetes between January 2010 until beginning of 2015, says a joint report of PWc and ASSOCHAM. The national loss on account of these diseases were estimated around $100 billion between a period of 2005 onwards until beginning of the calendar 2009, it points out.
The report named Working Towards Wellness, some of the findings of which are released here today by ASSOCHAM President, Mr. Sajjan Jindal highlight that due to tensions arising out of transitional liberalization in working and social life, number of people with hypertension in India is expected to see a quantum leap of nearly 127.5 million in next few years.
The number of people that suffered hypertension in the process of being a part of liberalized economy for survival has been estimated at over 60 million until about 2009, says ASSOCHAM and PWC.
Mr. Jindal further added that India’s loss in terms of losing potentially productive years due to deaths from cardiovascular diseases in people aged between 35-60 years is one of the highest in the world.
The reason for this is that since India is one of the fast developing countries it has yet to create facilities to take on tensions and high blood pressures that often lead to cardiovascular diseases.
According to the paper, 4 years ago, it was estimated that chronic diseases in India accounted for almost 53% of all deaths and 44% of disability adjusted life years. It is estimated that deaths from chronic diseases in India would register a sharp increase from 3.78 million in 1990 to over 6 million by 2015. In percentage terms, the increase accounts for over 60%.
The ASSOCHAM Chief said that India’s national income is hard hit since it has absolutely inadequate health centers even for routine check ups and on the other hand pressures arising out of integrated economy most of the working population is working over time beyond the prescribed work hours to retain their jobs. This
breeds tensions and hypertensions and cause attacks which often prove fatal. This leads to higher deaths which amount to great national incomes losses, the estimates of which have already been given.
It suggests that preventing chronic disease requires reducing tobacco intake, eating a healthier diet and exercising regularly. There are quick fixes, people must change their behavior so as to grow healthier. India is the world’s second largest consumer of tobacco resulting in experience huge rates of cancer, including the largest numbers of oral cancer in the world.
The government alone can not prevent the spread of chronic disease. The workplace will become and increasingly important place to prevent chronic disease. According to government estimates, almost 66% of all deaths in 2020 is likely to be from chronic diseases. The government has now decided to address the issues related to chronic diseases with equal energy and focus and is keen to involve and work together with a private sector and the civil society with a goal to prevent chronic diseases and save millions of lives.
The role of the private sector in India in prevention of chronic diseases is of paramount importance at this moment. India’s total health care expenses as % of its GDP is much lower than the world average of around 9%. The country’s public expenditure on health as a % of the total health expenditure is lower than countries like China, Pakistan and Bangladesh and is far lower than the world average. 
Citibank Launches New Credit Card Rewards Platform
Mumbai, October 6 2009: Citibank India today launched Citi Rewards, a new rewards platform targeted at customers who hold Citi-branded credit cards such as Citibank Diners, Citibank Platinum Select, Citibank Titanium Cash Rewards Cards, and others. The new CitiRewards platform offers customers the choice of over four million products for redemption of their reward points – from travel to electronic goods, Shopper’s Stop gift vouchers and home-delivered flowers to fitness clothing and shoes.
In addition, via Citi Rewards, customers of the Citibank Platinum Select and Citibank Titanium Cash Rewards credit cards can also redeem their points to pay off their card outstanding dues or for air miles across multiple airlines in India.
Sandeep Bhalla, Business Manager, Cards, Citi India, said, “We are delighted to launch CitiRewards. This new platform transforms rewards from being an add-on product of card ownership to the center of customer experience. This is also our way to thank customers for their Citibank Card preference, usage and loyalty. We are confident that by giving customers the unmatched experience of CitiRewards, we will further embed our Cards as the only way to pay.” 
CII organizes a business delegation to Iran coinciding with the Tehran International Exhibition
Delhi, October 6 2009: CII is organizing a 10 member business delegation led by Mr Vijay R Kiloskar, Chairman and Managing Director, Kirloskar Electric Company Ltd from the 6 – 8 October 2009. The delegation visit coincides with the Tehran International Fair, one of the largest international exhibitions organized by the Iran International Exhibitions Company (IIEC) and Industrial Development & Renovation Organisation (IDRO).

The visit is being organized with the objective to explore specific business opportunities for Indian businesses, to engage Indian and Iranian businessmen in meaningful interactions and to find ways and means to enhance bilateral economic, trade and investment cooperation between both the countries.

India-Iran trade & commercial relations are dominated by Indian import of Iranian crude oil. The total volume of bilateral trade between our two countries amounted to US$ 12591.92 mn during April-08- February 09 registering an increase of 30.61% as compared to US$ 11767.01 mn in April 07-February 08.

The sectors identified by CII for the cooperation are Pharmaceuticals, Automobiles and components, Fertilizers, Petrochemicals, Energy, Mining, Iron & Steel, Banking & Financial Services, ICT, SME and Biotechnology to name a few.

Besides visiting Tehran International Fair, the delegation members will meet with Iran Chamber of Commerce, Industries and Mines, Tehran Chamber of Commerce, Industries and Mines, The Organisation for Investment, Economic & Techncal Assistance of Iran (OITETAI), Chairman of the Board of Industrial Development & Renovation Organisation (IDRO), Ministry of Electricity, Department of Customs, Department of Foreign Trade, Ministry of Commerce, Iran Small Industries and Industrial Parks Organisation (ISIPO) and others. The delegation will also have one-to-one meetings with Iranian counterparts.

The members of the CII delegation include representatives from Essar Steel, Dynamic Logistics, Thermax Limited, International Tractors Ltd, Wendt India Ltd, Mungi Brothers and Kohinoor Foods. 
CII Task Force likely to recommend Remuneration Committee for Board
Delhi, October 5 2009: The 10 point Social Charter outlined by the Prime Minister in 2007 at the Annual Session of CII was a call that Indian Industry has been using as a guiding principle. Large parts of governance, social and sustainable code of India Inc today are dictated by the Prime Minister’s agenda of 2007, said a CII Press Release issued here today.

Significant strides have been made by Industry in the areas of inclusiveness and sustainability, since 2007 the release said.

Commenting on the governance agenda, the CII release said that a high level Task Force under the leadership of Mr Naresh Chandra has been working on the key issues in the domain of Corporate Governance and a comprehensive report of the Task Force is expected soon, which is likely to highlight a set of practices which could be voluntarily adopted by Industry and listed companies in particular.

Among other subjects the Code is also likely to recommend the constitution of a remuneration committee which would be entrusted with the task of developing a remuneration policy of executives at the board level and one level below the board. The remuneration committee is likely to have delegated responsibility for setting the remuneration for all executive directors and the chairman, including any compensation payments, such as retrial benefits or stock options, subject to approval of shareholders, the CII release said.

Commenting on this initiative of CII, Mr Venu Srinivasan, President of the apex Association said that CII has always believed that corporates have a social responsibility and always supported self regulation, and in fact way back in 1998, CII was the first to bring in a Code on Corporate Governance in the country, which was much before the SEBI regulations for listed companies were formalized through clause 49 of the listing agreement. 
‘Austerity’ acceptable but let market forces determine salaries of CEOs : Assocham
Delhi, October 5 2009: While Associated Chambers of Commerce and Industry of India (ASSOCHAM) favours adoption of austerity measures by corporate sector at current time of crisis, it is, however, of the view that India Inc. cannot ignore market forces to determine salaries of corporate honchos to enable them attract the best of talent and thus emerge an economic superpower.
The aforesaid conclusions have been drawn in a quick email Survey carried out by ASSOCHAM Secretariat by contacting over 100 CEO’s on issue of austerity measures, recommended by Corporate Affairs Minister, Mr. Salman Khurshid in which 80% of them said that corporate India needs to adopt austerity measures as it is the need of hour.
Releasing its findings, the ASSOCHAM President, Mr. Sajjan Jindal, however, pointed out that 60% of CEO’s contacted by the ASSOCHAM here today felt that major challenge India is confronting with is for becoming a super economic power, which can only be possible by recording a higher growth momentum in its economy.
“Essential ingredients for it would be employment of the best talent in corporate world whose salary package has to match the prevailing best in all parts of the globe”, unanimously said these CEOs.
According to ASSOCHAM survey about 60 CEOs belonging to real estate, consumer durables, steel, cement, mining, banking & finance were of the view that corporate CEO’s would be able to attract the best talent to work for them provided their independence for deciding the salary structure of CEO’s is not encroached upon by any regulatory mechanism.
However, nearly 40 CEOs held the view that corporates should avoid ostentation and make judicious and prudent utilization of their resources to fuel growth momentum to create larger employment opportunities and render their social corporate responsibility in the most effective manner. 

Industry News: 21st September- 30th Setember 2009

Rs. 300 cr. okayed to hire IT experts for E-governance : Addl. Secretary, IT Ministry

Delhi, September 30 2009: The Union government has permitted Department of Information Technology to hire IT professionals from private sector to popularize its e-governance initiatives in rural India and initially sanctioned Rs.300 crore for the purpose, disclosed Additional Secretary, Department of IT, Mr. S.R. Rao.

Delivering his Keynote Address at ASSOCHAM Summit on E-Governance here today, Mr. Rao said that such e-governance projects would aim at building capacities through private-public partnership since government has little IT resources at it’s command.

The Department of IT will order private placements to restore IT facilities throughout the country by launching pilot projects for a period of 6 months, said Mr. Rao adding that the proposed e-governance projects would fall under Bharat Nirman initiatives of the government in which the centre each year spends Rs.1,50,000 crore for creation of rural infrastructure.

The amount of Rs. 300 crore has initially been sanctioned at the latest Cabinet meeting and aims at connecting rural India with uninterrupted broadband facilities, said Mr. Rao.

Responding to a query raised by one of the ASSOCHAM member during the question-answer session, Mr. Rao said that due to shortages of power which comes at stumbling block for telephone connectivity and broadband facilities in Gram panchayats, the Ministry of IT is in talks with Renewable Energy Ministry to provide to it solar panel so that such panels are installed in urban India to provide power to ensure telephonic and broadband connectivity.

Dr. Rao announced that by June next year, 60% of land mass of rural India would be provided with telephone connections as well as broadband facilities for which power resources would be given by Ministry of Non-Renewable Energy Sources. In next 3 years, 99% of rural India would be connected with e-governance initiatives by providing it to high powered broadband facilities.

Dr. Rao also indicated that the Union government is also formulating to policy for financial inclusion on mobile platform which would mean that after the policy guidelines are rolled out, users would be able to transact most of their transactions such as payment of electricity and telephone bills etc. through mobile.

Speaking on the occasion, IT Secretary of Govt. of Uttar Pradesh, Mr. Chandra Prakash blamed state-owned Bharat Sanchar Nigam for not providing connectivity for e-governance initiatives at least in the State of Uttar Pradesh.

Because of inadequate infrastructure of BSNL in Uttar Pradesh, the State could establish only 4500 Computer hubs in the state in the last 1½ years against target of 17,000 such centres. Power is another stumbling block in making e-governance initiatives a liability and until the required inputs are ensured, the e-governance initiative under Bharat Nirman project will remain ambitious and unrealistic, said Mr. Prakash.

Among others who spoke on the occasion demanding creation of better facilities by Department of IT for making e-governance initiatives of the government pervasive and intensive comprised Mr. Ravi Venkataraman, CEO, Vakrangee Softwares Ltd., Mr. Umang Das, Chairman ASSOCHAM eGovernance Committee, Mr. Rajan Anandan, Managing Director, Microsoft India, Mr. Sunil Kanoria, Vice Chairman, SREI Infrastructure and Mr. Rajeev Weimin Yao, Executive Director, Huawevi Telecomm and Mr. Neel Rattan, Executive Director, PWC.

CII CEOs delegation explores business opportunities in Russia : To Strength Partnership through enhanced Trade and Investments

Delhi, September 30 2009: Coinciding with 3rd India Russia Forum on Trade & Investment, CII has mounted a 15 member CEOs delegation to Moscow and St Petersburg from 28-30 September 2009. The delegation is being led by Mr N Kumar, Past President CII & Vice Chairman, Sanmar Group.

At the meeting of the 3rd India Russia Forum on Trade & Investment on 29 September 2009, Mr Anand Sharma, Minister of Commerce and Industry acknowledged that India’s achievements in space and nuclear energy technology has been made possible with consistent Russian support. Ms Elvira Nabiullina, Minister for Economic Development of the Russian Federation announced the establishment of five working groups on energy and nuclear energy, space technology, pharmaceuticals and medical, IT and software. Mr Alexander Zhukov, Deputy Prime Minister of the Russian Federation also interacted with the Indian delegation and expressed Russia’s commitment for establishing groundbreaking collaboration with Indian businesses.

The forum, attended by over 250 Russian and Indian participants had focused Sessions on Manufacturing and Power Generation, Innovation, Information & Communication Technology & Financial Services, Pharmaceuticals and Biotechnologies. A session on Regions of Russia also highlighted the competitive advantages of various regions. Select companies from both sides had the opportunity to present their business interests, proposals and explore possibilities of collaboration.

On 28 September 2009, CII delegates, representing various sectors including chemicals and pharmaceuticals, steel, ceramics, energy and mining, interacted with the International Congress of Industrialists and Entrepreneurs (ICIE) and the Russian Union of Entrepreneurs and Industrialists (RUEI), both CII MOU partners. They resolved to strengthen their engagement with the members of Indian industry focusing on concrete results and suggested constituting a business council along the BRIC framework, strengthening industry-to-government partnership, encouraging engagement for SMEs and inviting key officials of the Russian regulatory institutions to visit high class facilities in India and hosting more Russian delegation in India as well.

Later at an interactive session with members of Indian Industry held on 28th September 2009, Minister Anand Sharma emphasized that India’s level of economic engagement with Russia must be given a profile befitting a strategic partner of the future while Ambassador Prabhat Shukla, Ambassador of India to Russia highlighted the lack of significant presence of Indian industry in Russia. Indian industrialists and entrepreneurs had the opportunity to interact with Minister Sharma and raise their issues of concern while doing business in Russia.

Australia safe for Indian students”: Premier of Victoria

Delhi, September 25 2009: In an attempt to promote Australia as a safe education destination for international students, The Hon. John Brumby MP, Premier of Victoria and Minister for Multicultural Affairs, Government of Victoria, Australia, has said, the Australian government is committed to the safety of international students in Australia. He said the Australian government has taken a number of initiatives to promote security of international students such as opening up of 24 hour student care centre, strengthening of laws against racially motivated crimes among others.

Mr. Brumby was speaking at the Session on “Building Relationships through education”, organised by the Confederation of Indian Industry (CII), here today. The Australian Government will soon submit a detailed follow up report on the action taken against the perpetrators of recent attacks on Indian students in Australia, he informed.

Inviting Indian students to study in Australia, he said Australia in general and Victoria in particular boasts of some of the best universities in the World. He also informed about the scholarship programme initiated for international students in Australia, of which inaugural scholarships would be given to four Indian students.

Mr Brumby announced the Victorian Government would award five Victorian and five Indian undergraduate and high-level vocational education training students AUD$10,000 scholarships in 2009, as part of a new International Exchange Scholarship program.

Expressing deep interest to partner India in the education sector. He called for building greater partnerships between Indian and Australian Universities. Collaboration in Science and Technology, technical and professional education were among the other major areas for cooperation between India and Australia, opined Mr. Brumby.

The Hon. Jacinta ALLAN MP, Minister of Skills and Workforce Participation & Minister for Regional and Rural Development, Government of Victoria, Australia said, Australia welcomes Indian students and is committed to help them to achieve their ambitions. She said, her government is working to make the stay of international students in Australia a memorable experience. She however, added that unscrupulous education agents in India who give misleading information to Indian students, was hurting the reputation of Australia as an education destination.

H.E. Mr. Peter Varghese, Australian High Commissioner said greater cooperation in education sector, is central to greater bilateral partnership between India and Australia. He said as the clout of India in global economy increases, the complementarities between the two countries would also grow.

Earlier, Mr. P Rajendran, Director & COO NIIT Ltd, said the bilateral relationship between India and Australia has grown enormously in last few years. He said India is among the major trade partners for Australia and added that service sectors like education, health, tourism could take the bilateral relationship between the two countries to a new level.

Dr. Y S Rajan, Principal Adviser, Confederation of Indian Industry, in his closing remarks said, all the small steps taken by both India and Australia to boost bilateral ties were welcome. He said all these small steps will lead to big results in the long run.

“States working towards removing Trade Barriers”

Delhi, September 25 2009: “Soon India will be like European Union (EU) with trade barriers being removed amongst the States” said Mr. V Sridhar, Chairman, Central Board of Excise and Customs (CBEC) at the CII Conference on ‘E-Invoicing: Adapting E-Business Practices and Policies in a Changing Economic Environment’, held in New Delhi today.

Giving the keynote address Mr. Sridhar said “Government is geared up for the implementation of Goods and Services Tax (GST) by 1st April 2010 and efforts are being made to bring consensus among all States and the Centre to subsume State level levies and mitigate the challenges for a successful dual GST implementation.”

He added “The Government has been promoting ‘e-business’ and had started the Electronic Data Interchange (‘EDI’) initiative for the imports (Customs duty) in 1995 which presently covers 80% of the country’s trade through EDI and is expected to attain 90 % by end of the year. As India’s IT Act already enables invoicing through electronic medium, there is a need to create awareness for e-invoicing amongst businesses. Since the implementation of GST is on the cards, the time is opportune for industry to participate and start pilot projects involving their vendors and other channel partners to help build acceptability of e-invoicing.”

Mr. Robert Parker, CFO, IBM India Pvt. Ltd. said “The digital and physical infrastructure of the world would be converging in a friction free internet future. While most B2B messaging – such as purchase orders and delivery confirmations can be easily automated, the companies have been reluctant to embark on paperless invoicing in India. This has been partially due to inter-operability and security concerns but the greatest obstacle has been legal uncertainty.” He summarized that “e-invoicing provides multifold benefits like real time data delivery; significant cost reduction on paper, time and administrative costs; error free invoicing process reducing manual error and costs; real time tax compliance with legislation; inherent security with the use of relevant protocol and accurate management information”.

Ms. Ine Lejeune, Global Leader of the Indirect Taxes Network, Pricewaterhouse Coopers (PwC), stated that “The total GDP of the EU was US $ 16,523 bn and the estimated number of invoices raised annually in the EU was 27 bn. As a result, the potential savings arising out of elimination of paper invoices through e-invoicing initiatives was to the tune of US $ 357 bn, which was approximately 2% of the total EU GDP. For India too, there could be a similar savings potential which needs to be realized. Time was opportune for introducing e-invoicing in the Central as well as the State tax laws given the proposed dual GST scheduled for implementation by 1st April 2010.”

Dr. Ganesh Natarjan, Chairman CII National Committee on IT, ITES and eCommerce, and CEO & Vice Chairman of Zensar Technologies Ltd, said that “CII has been working closely with the stakeholders and the Government to enable an e-environment to bring multifold benefits of IT through governance, education, healthcare and agriculture and E-Invoicing is one big step in that direction.” “The objective of this Conference on e-Invoicing is to bring awareness about to benefits of e-invoicing and understand barriers of e-invoicing in India and discuss – simplifying financial supply chain management, global trade, international experiences, current challenges and suitable solutions”, he mentioned.

SEZ units to enjoy Tax Benefits Even after 2011 : DG. EoUs/SEZs

Delhi, September 25 2009: Finance Ministry will shortly issue a Notification, clarifying that SEZ units and their developers would continue to enjoy tax incentives including Income-tax benefits as guaranteed under SEZ Act of 2005 even after 2011 when the government adopts its new Direct Tax Code, says Director General, Export Promotion Council for EOUs and SEZs, Dr. L B Singhal.

Inaugurating ASOCHAM organized International Convention on SEZs here today, Dr. Singhal announced that Ministry of Commerce has been pursuing this issue with the Finance Ministry as its Direct Tax Code unveiled for public consumption is silent if existing tax benefits and income-tax exemptions would continue for SEZs and their developers after it becomes operative from 2011 onwards.

“Positive indications have come to Export Promotion Council for EOUs and SEZs from Commerce Ministry that Finance Ministry is likely to issue a notification in this regard in next few weeks, enunciating that SEZ units and their developers would be entitled to avail tax benefits as guaranteed under 2005 SEZs Act after the government adopts its new Direct Tax Code”, indicated Dr. Singhal.

It may be mentioned that the SEZ Act of 2005 become operational from 10th of February 2006 under which SEZs units and their developers enjoy taxation and income-tax benefits.

Dr. Singhal also announced that from November 2009 onwards, SEZ units and their developers would get online clearances from Ministry of Commerce to commence work in SEZ units in Mumbai. The decision has been taken recently that from April 2010 onwards, SEZ units in Delhi would get clearances for making their establishment operative and thereafter this facility would be extended to all parts of the country for SEZs units.

Dr. Singhal stated that SEZ scheme has done extremely well after operationalization of SEZ Act and Rules on 10th February 2006 as in the SEZs incremental investment of Rs.1,10,605 crore has been made and the exports from SEZs has gone up from 22,840 crore in 2005-06 to Rs.99,689 crore in 2008-09 in the last year.

Speaking on the occasion, Development Commissioner Noida SEZ, Mr. S C Panda said that the Commerce Ministry has issue directives to make single window system more effective for giving clearances for SEZ units within 15 days after their application have been submitted. Ever since, this directive came SEZ boards throughout the State are mandatory meeting twice in a month for giving approvals so that more and more SEZ units become operative to contribute to exports.

ASSOCHAM SEZ Council Co-Chairman, Mr. Navin Raheja said that SEZs were hassle-free zones where clearances are hardly delay and added that since there are not many operators have so far come into SEZ units, this is the opportune time to park investors money in such zones.

Mr. D S Rawat, ASSOCHAM Secretary General welcomed the announcement that Finance Ministry would incorporate clarifications for extending tax and income-tax benefits for SEZ units after the government adopts new Direct Tax Code.

Among others who were present on the occasion included Ambassador of Bulgaria, Mr. Borislav Kostov and CMD, Siri City Pvt. Ltd., Mr. Ravindra Sannareddy.

Wipro Signs Co-Development Agreement with Oracle

Bangalore, September 25 2009: Wipro Technologies, the global IT services business of Wipro Limited (NYSE:WIT) today announced that it has signed a master co-development agreement with Oracle to develop multiple industry solutions using Oracle® Application Integration Architecture (AIA), an open, standards-based platform for business process integration across Oracle, third-party and custom applications.

Under this agreement Wipro and Oracle will co-develop end-to-end industry process solutions for five different industries including communication, retail, consumer products, hi-tech, and industrial manufacturing. The co-developed Oracle Process Integration Packs includes campaign to cash for hi- tech, order to activate for communications and design to release for process manufacturing. Wipro is one of the first partners to sign an agreement with Oracle spanning such a wide range of industries.

“Wipro has provided innovative solutions that accelerate service launch delivery and enhance the customer experience, by integrating 17 applications in 8 months, either through bespoke developed frameworks or through standardized extensions that ensure seamless integration of OSS/BSS components”, said Mr Craig Humphreys, VP, Information Technology, Atheeb. “Wipro and Oracle provided a compelling value proposition in terms of a strong alliance at all levels including delivery. We are pleased to have chosen Wipro as our OSS/BSS solution partner, since they have the end to end view of business priorities and understood our imperatives for a successful service launch.”

“Many enterprises find themselves struggling to deliver and standardize business processes that span multiple applications cost effectively,” said Jose Lazares, Vice President, Applications Development and Strategy at Oracle. “Our co-development approach aims to involve selected partners, like Wipro, who have specific expertise and skills in industry specific business processes, to co-develop pre-built, best practice integration products with us and then deploy these for customers in a rapid and cost effective manner.”

Speaking on the occasion Sangita Singh, Senior Vice President, Wipro Technologies, said; “The co development agreement is part of our continued strategy to invest in technology innovation and build deep industry expertise along with partners. The industry specific solutions developed are designed to leverage Oracle platforms and provide faster time to market at lower cost of ownership for our clients”.

Global financial crisis has not shaken investors confidence : E&Y-Assocham

Delhi, September 24 2009: The Survey jointly undertaken by the Ernst & Young and ASSOCHAM has revealed that the global financial crisis has not significantly dampened investor confidence in India for infrastructure investments.

Over 84% of the respondents believe that last year’s crisis had a very limited/short-term impact and the activity is expected to pick-up in the next few months.

Interestingly, the survey says “close to 85% of our respondents confirmed that the current environment is conducive to raise infrastructure-focused funds”. Some of them believe that this is the right time to start investing as the stretched valuations of the recent past are becoming more realistic.

However, majority of the respondents cited inordinate delays in getting approvals and a complex regulatory environment as major factors hindering private equity (PE) flows in the infrastructure.

The E&Y-ASSOCHAM survey further states the challenges faced by PE investors while investing in Indian infrastructure. While 73% respondents stated delay in getting approvals, 68% points out complex regulatory mechanism, 58% stated delay in financial closure of projects & long gestation period of infrastructure projects, 53% blamed non-transparent bidding process and 45% to prevalence of single asset investments.

The ASSOCHAM spokesman said infrastructure projects typically involve a long payback period, whereas the debt that is available for financing infrastructure project matures in a period of 7–12 years. Meanwhile, regulatory procedures, delays in project implementation and several unplanned cost escalations create concerns regarding the financial viability of projects and disrupt the free flow of investments by PE houses.

Further, respondents cited project or investment risks on account of contractual structures, aggressive bidding or incomplete traffic estimates as some of the key issues faced by them while investing in infrastructure projects. Some of the respondents also viewed delays in completing land acquisitions as an additional factor that hinders PE investments. The delay in land acquisition leads to execution delays, and this in turn, results in escalation in project costs, impacting IRR from the investments.

Respondents primarily believe that an underdeveloped bond market in India impacts the financing of infrastructure projects. Unlike other developed nations, where a vibrant bond market serves as an alternative avenue for financing/refinancing, the bond market in India has not grown substantially. Thus, the underdevelopment of bond markets in the country poses hurdles in accessing funds for the sector. PE investors cited concerns such as the unavailability of long-term fixed rate financing over a long-term concession period as one of the impeding factors in infrastructure financing.

Despite the credit crisis, PE investors remained positive about the returns expected from their investments in infrastructure projects. Around 50% of our respondents expect to achieve a targeted 20–25% IRR from their investments in infrastructure projects. Notably, another 31% of the respondents target more than 25% IRR on their investments. The fundamental driver for high-return expectations is the underinvestment in the sector, which calls for a rapid development in the infrastructure landscape, and hence, higher returns. In addition, infrastructure assets are characterized with low-operating costs coupled with predictable cash flows, which provides for a relatively high and stable return on investment.

India’s Foremost Thought Leaders to Address India Leadership Conclave ’09

Mumbai, September 24 2009: Wockhardt Foundation in association with ASSOCHAM to bring in India’s foremost thought leaders at the India Leadership Summit ’09 to be held on 26th Sep, 2009 at The Hotel Taj Palace, New Delhi.

The theme of ‘Indian Leadership Conclave 2009″ – “Will Indian Economy bounce back by 2010” reflects the thoughts of the business and the people both within the country and outside. The conclave will discuss India’s Rising Power in Global Community, Emergence of Socio- Development Sector Globally, a Human approach to world peace and the next generation Emerging Company.

The India Leadership Conclave 2009 will also felicitate Indian leaders and successful businesspersons of India Inc who have made an impact on the economy. The awards were decided by a distinguished panel of judges which has been formulated by picking up the think tanks from all walks of life. The award panel looked at a cross section of the industry from large conglomerates to emerging mid-cap and small cap companies including unlisted companies.

The Key Note Address at the conclave will be delivered by Shri Salman Khurshid, Hon’ble Minister of State (Independent Charge) for Corporate Affairs & Minority Affairs.

The platform will see eminent figures including the former president of India and scientist – Dr. APJ Abdul Kalam, Vice Chairman & MD of JSW Steel – Mr.Sajjan Jindal, Chairman of Wockhardt Ltd – Mr.Habil Khorakiwala, Chairman of SBI – Mr.OP Bhatt, India’s leading banker and MD of Kotak Mahindra Bank Ltd – Mr.Uday Kotak , Bollywood filmmaker and producer Mr. Yash Chopra, CEO of ICICI Bank and one of the most successful Indian woman leader – Mrs. Chanda D Kochhar, Chairman and managing director of Bank of Baroda Mr. M. D. Mallya, Chairman Fortis Healthcare & Religare – Mr. Malvinder Mohan Singh, IPL chairman – Mr. Lalit Modi, CEO of Neuland Laboratories – Sucheth Rao Davuluri, Chairman of Videocon – Mr.Venugopal Dhoot, Writer,.columnist and social activist – Ms. Shobha De, Director-Human Resources, Infosys – Mr. T V Mohandas Pai, Chairman & CEO of Edelweiss – Mr. Rashesh Shah, Vice-chairman of GVK Industries and managing director of Mumbai International Airport Ltd – Mr. Sanjay Reddy, President & CFO of UB Group – A K Ravi Nedungadi discussing and debating the future of the Indian Economy. These eminent speakers will touch various topics that will be of tremendous significance to the Indian Economy.

Mr. Huzaifa Khorakiwala, CEO, Wockhardt Foundation said,” The objective behind this conclave is that the present downturn is temporary and our growth rate is expected to be well over seven percent, despite the downturn in global scenario, India has managed to achieve seven percent growth. Also according to the industry experts, the country’s economy is likely to find an upturn by 2010. India stood out as a “shining example” of a resilient economy, when the world was engulfed by economic gloom. Many believe that we owe this resilience of Indian business and economy, to its ability to quickly adjust to changing time. But in no other country, we have seen businessmen adjusting rapidly to the situation.”

India wins a silver in the Skills Olympic

Delhi, September 23 2009: This year, India participated in the World Skills Competition at Calgary, touted as the World Skills Olympics and won a silver medal. The event was held at Calgary, Canada from 1 to 6 September, 2009 in which 900 competitors from 51 countries participated in 45 skill categories ranging from manufacturing, mechatronics, polymechanics automation, Mechanical engineering Design-CAD, CNC turning, CNC Milling, Mould making, Information technology software applications, welding, plumbing, electronics, industrial control, robotics to carpentry, jewelry, floristry, hair dressing, beauty therapy, confectionary, landscape, gardening., restaurant service and caring, etc. The event is held every two years.

India became member of the World Skills International, a body consisting of 51 countries, in 2007 and participated in 39th world skills competition for the first time in 2007 in Shizuka, Japan with 5 participants. However, it could not win any medal. This year, India sent a team of only two – Mould making and Information Technology software applications. N Priyadarshan, 22 year, trained in Ge Dee Technical Training Institute (GTTI), Coimbatore won Silver Medal along with Japan in Mould making. Gold medal in the even went to Korea. The other participant S Siddharaju, 21 years from Nettur Technical Training Foundation (NTTF), Bangalore participated in IT Software application and did well.

The Indian delegation to Calgary was headed by Shri Sharda Prasad, Director General Employment & Training and Joint Secretary in the Ministry of Labour & Employment, Government of India and consisted of P Mallinathan from GTTI, Chief Expert, MN Guruvenkatesh from NTTF, Expert, K Venugopal, Technical Delegate, AK Verma, Deputy Director and others.

This event, 40th in the series, showcased the best of talents in 45 Skill categories from across the world. This has been the largest even so far in the history of World Skills International, which was created in 1950. The 41st World skills Competition will be held in London in 2011.

Human Skills – Biggest Outsourcing Opportunity : CII Global Skills Summit

Delhi, September 23 2009: Introducing Vocational Training between Class 8 and 12 could be an important way to deal with the country’s skill shortage, said Mr. Kapil Sibal, Union Minister for Human Resource Development, Government of India at the 3rd CII Global Summit on Skills Development in Delhi. Only 1 out of 8 students study further than Class 12 therefore there was an urgent need for converting the natural skills of students into employable, vocational skills. A large number of students wanted to acquire ordinary skills that would enable them to lead ordinary lives. We should help them to do this, the minister said. There was an enormous shortage of skilled workers across the board ranging from shop floor attendants to doctors and scientists. There was a talent deficit that ranged from between 50% to 80%. A deficit was also an opportunity.

Skills were required in niche areas of technology but also in other areas. The way forward was to start at the beginning. The Right to Education sought to ensure that every child went to school. In addition, it was important to involve the private sector in education. Equally there was need to have a good accreditation system in place to ensure quality, and to have Teacher Training programmes to see that scale was achieved.

The government was committed to setting up 50 new Central Universities, 1600 new ITIs, 10,000 vocational institutes. The aim was to skill 10 million more people each year. A Critical Mass of highly skilled people is needed to fuel growth and guarantee wealth.

There needed to be continuous up scaling and up gradation. There was need to improve the Gross Enrolment Ratio from the present 12.4% in India to 30% by 2022. In the developed world the GER was in the region of 70%.

Mr. Sibal said that while the developed world had a demographic deficit India had a demographic dividend. If the global community realized the enormous opportunity this represented and invested in the talent pool this country offered, it would benefit not just India but the world.

Mr. Sibal emphasized that the country was actively looking at partnerships from countries such as Germany which had very good vocational training institutes. Institutes abroad could very effectively set up branches in India or go in for “twinning” as a model. A marine institute from Norway is soon going to start an Indian branch. This will help them meet their skills shortage and skill Indian youth. This was one example of a win-win situation.

Other speakers at the session also emphasized the role of skills in a nation’s development. Mr. Arun Maira, Member, Planning Commission recounted how Germany had helped train Indian automobile engineers at the time of Independence and thus provided a much needed impetus for the Indian automobile industry. These trained Indian specialists then went on to train Singaporeans. This he said was the kind of collaboration that was urgently needed in the present time. Mr Dominic Savage outlined how a teacher’s efforts in the classroom could become more effective with the use of appropriate educational aids. Mr Manfred Kremer, President, Vocational Institute BIBB looked forward to working more closely with India in the future.

Mr Raghuttama Rao, Managing Director, IMaCS reiterated that the real opportunity lay at the bottom of the pyramid. This was the biggest challenge and opportunity in the area of skill development.

Timken Appoints Ajay Das as the New Managing Director for its Business in India

Bangalore, September 23 2009: The Timken Company (NYSE: TKR) today announced the appointment of Mr. Ajay Das as its new managing director for its business in India, headquartered in Bangalore.

In this new role, Mr. Das will oversee the continued growth of the company’s business in India, including the Timken Engineering Research Institute, the global R&D and engineering facility at Bangalore, operations at Jamshedpur and Chennai, as well as sales, marketing and all supporting functions.

“I am optimistic about returning to India and the significant growth opportunities we have in this region. Timken has created the ‘best in the industry’ engineering, manufacturing, sales and services capabilities to serve a growing customer base in India. We will continue to focus on leveraging those capabilities to improve the performance of our customers’ operations, and to deliver additional value to them,” said Mr. Das.

In 17 years with Timken, Ajay Das has provided leadership across business segments. He was national sales manager of the automotive business in India, and later was the director of manufacturing of the Jamshedpur plant between 2001 and 2005. In 2005, he relocated to Shanghai as director of new business development, and in 2007 he became the general manager of Timken’s wind energy business unit based in Canton, Ohio, United States of America.

Mr. Das received a degree in Mechanical Engineering from the National Institute of Technology, Jamshedpur and a Post Graduate Diploma in Business Management from XLRI, Jamshedpur.

Allow free tobacco seeds imports : Assocham

Delhi, September 23 2009: The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has urged the government to allow free import of Tobacco seeds for R&D and commercial purposes for recognized research and development institutions in private sector. In addition, it has also sought removal of service tax on properties and storage facilities that store tobacco leaf.

The Chamber has argued that free tobacco seeds import will ensure development of high yielding tobacco varieties as also hybrid in tobacco crops and therefore restrictions on imports of tobacco seeds be removed.

In its proposals submitted to the government, ASSOCHAM President, Mr. Sajjan Jindal stressed that the new high yielding varieties and hybrid in tobacco will be offered to farmers with comprehensive field performance data so that their tobacco crops sowing patterns witness drastic improvements.

The introduction of high yielding variety of tobacco crops, according to ASSOCHAM, will lead to better farm economics through higher productivity. In the long run, this will enable India to grow flavorful and other internationally benchmarked styles of tobacco that will fetch the higher realization in the world tobacco market and enhance farmers prosperity immensely.

The ASSOCHAM President expressed hope that government will consider the proposal in this regard as industry has for long been demanding lifting of ban on free import of tobacco seeds.

In addition, the ASSOCHAM has also demanded removal of service tax on properties and storage facilities that store tobacco leaf. Tobacco, argued the ASSOCHAM is a seasonal agriculture crop and therefore it is required to be stored so that it can be used year around. Every tobacco trader, dealer, processor and exporter has to store tobacco in course of their business.

Therefore, imposition of service tax on renting of immovable properties for the use in business or commerce will increase the cost of storage and thus made the Indian tobacco exporter uncompetitive in the export market.

The ASSOCHAM has also said that levy of service tax on tobacco boards services is also uncalled for and demanded its removal saying that the Ministry of Finance vide office memorandum F.No.137/87/2008-Cx4 dated 14.8.08 has clarified that service tax will be applicable on services rendered by tobacco board.

This, according to ASSOCHAM will lead to further burden of incidents on high taxation on tobacco crop and make it uncompetitive in export market. Therefore, service tax on services rendered by Tobacco board should be abolished.

The Chamber has also pointed out that Section 33A of Income Tax Act which permits development allowance for tea plantation should also be extended to tobacco crop development with a weighted deduction of 150%. By this, those engaged in tobacco crop development, extension services and research will be encouraged to invest in upgradation of tobacco cultivation for improving returns to farmers and enhancing export competitiveness.

Similarly, assistance given to farmers by tobacco industry towards modernization of cultivation practices i.e. solar barns, seeding, irrigation equipment should be treated as business expenditure and given weighted reduction in the year, it is incurred.

India is one of the largest grower of tobacco in the world. It is estimated that over 30 million livelihoods are dependent on tobacco farming. Most of the tobacco is grown in rainfed areas and in harsh agricultural conditions which do not lend itself to growing of other remunerative crops comparable to tobacco. Given the huge livelihood support that tobacco farming provides, it is important to offer support to farmers and organizations engaged in building capacities of farmers, R&D, customised extension services and export development.

Like essential products supplies: Assocham

Delhi, September 21 2009: At a time when food prices are skyrocketing and making a serious dent in wage earners purchasing power, The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has urged Reserve Bank of India (RBI) to enforce Selective Credit Control Measures (SCCM) to restrict hoarding, tame food inflation and ensure adequate supplies of essential commodities in markets.

Under section 21 of Banking Regulation Act, the RBI is empowered to exercise SCCM but somehow it has reservations and apprehensions that invoking such directives can subject the apex bank to unjustified criticism from vested interests belonging to trading and hoarding lobbies.

According to ASSOCHAM, the prices of primary food articles are going extremely high with annual inflation for food items, currently at decade high of 15 per cent while the headline retail inflation as measured by three consumer price indices is at around 12 per cent each.

These factors have put extreme pressures on supplies of essential commodities and food articles as also encouraged hoarding among traders throughout the country.

This needs to be urgently addressed in the interest of common masses and the Chamber strongly feels that the RBI should come forward to take a bold policy decision so that public funds are not used unreasonably for hoarding essential supplies.

Therefore, there is strong case to implement stipulations of SCCM without any further delay as the consumer price index is already in double digit. The ASSOCHAM has also cautioned the apex bank to immediately take centre into confidence if in case it needs any direction from policy makers in this regard.

Otherwise the approaching festive season coupled with adverse impact of failed monsoon will offer sufficient opportunities for hoarders to take full advantage of prevailing situation to further constraint supplies and escalate severe inflationary pressures, said the President ASSOCHAM, Mr Sajjan Jindal.

According to ASSOCHAM, the inflation control measures of RBI could include an increase in minimum margins for lending against select commodities, currently close to 25 per cent and ceiling on levels of credit and increasing the interest rates to discourage speculative hoarding and thereby alleviate the pressures on prices.

As per the ASSOCHAM, so far whatever steps, initiated by the government in consultation with the RBI to augment supplies of essential articles in the market and contain price rise have yielded lukewarm results even with assurances for imports. Therefore to supplement its efforts for making available adequate and orderly supplies, ASSOCHAM is of the strong view that selective credit control measures be enforced immediately by the RBI.

With credit off-take yet to pick up and economy take longer to be back on higher growth trajectory, a case for hike in key policy rate is ruled out for the time being. But inflation is soaring in certain segments, more particularly food items for which, government and RBI is seriously concerned.

Therefore the SCCM if enforced will be effective in taming inflation in certain sectors and also not hurt investments for faster economic recovery, said Mr. Jindal.

The annual rate of inflation is at 0.12 per cent for the week ended September 5, 2009, ending the 13 week decline in the whole sale price index (WPI) as prices of food articles showed no signs of abating. Inflationary pressures are beginning to built up with retail inflation already in double digits. With the comfort of negative inflation for the most widely watched WPI also gone, the ASSOCHAM feels that RBI may take steps to suck out access liquidity from the system and even resort to sector specific measures to tame food price inflation and to ensure credit flow to some key sectors.

SEZs more lucratives for south: PWC-Assocham

Delhi, September 21 2009: nvestment friendly land acquisition policies of Southern States have pushed them go far ahead in getting larger number of SEZs notified as against States in North India, which do not provide right environment for SEZs investors to get their proposals formally approved and notified, reveals a joint report of PWC and ASSOCHAM.

The report of State-Wise Distribution of SEZs in India adds that for example, in Tamil Nadu, 69 SEZs have so far been approved by government, of which 54 are notified and in majority of them, construction work is commenced. Likewise, in Andhra, number of SEZs formally approved stands at 103, out of which 70 such facilities are notified as on date.

In Karnataka and Kerala, number of SEZs approved are respectively 53 and 25 of which 30 and 10 have been notified”, reveals the ASSOCHAM-PWC Paper.

Releasing its findings, ASSOCHAM President, Mr. Sajjan Jindal said that the situation in Northern part is comparatively adverse and it’s state governments are partly responsible for it as land acquisition in Northern part has been consistently subject to intense controversies because of loopholes in their policies.

A case for example is that of State of Punjab in which the centre so far approved 10 SEZs for it and only 2 SEZs have so far been notified for the State. Likewise, State of Uttar Pradesh in which 34 SEZs have been approved, notification for SEZs numbering 16 have so far been issued and in the entire State, if there is 1 worth mentioning operational SEZ is, i.e. Noida SEZs, remaining hung up in one controversy or other.

In State of Madhya Pradesh, 14 SEZs are formally approved against which only 5 are notified. However, the progress in Rajasthan is extremely satisfactory in which 8 SEZs are approved and 7 of them are notified.

The ASSOCHAM-PWC have jointly recommended that wherever work for commissioning SEZs is being delayed, the government should ensure their de-notification as current SEZs rules do not provide for a specific de-notification process. The two organizations also pointed out that the SEZs benefits and exemptions do not encourage the ancillary industries/vendors/support manufacturers of the main industry to house themselves in the SEZs and accordingly modification need to be made.

An SEZ unit (vendor) supplying to another SEZs (the main manufacturer) does not get any income-tax benefit on account of existing definition of exports under the income-tax Act. This anomaly needs to be corrected.

The ASSOCHAM has also pointed out that the new Direct Tax Code as it stands today proposes not to provide any fiscal benefits/tax exemptions to SEZ units. SEZ developers benefits are proposed to be transitioned from the profit based incentive under Section 10IAB to investment based reduction without any fixed period. It is therefore, suggested that tax incentives need to be carried on for SEZs in the tax code proposed by the UPA government, said Mr. Jindal.

Industry News: 1st September till 20th September’2009

Govt. to create micro financial institutions & rating agencies for real estate : Kumari Selja

Delhi, September 10 2009: Ministry of Housing and Urban Poverty Alleviation would shortly set up a high powered committee to examine possibilities for creation of series of micro financial institutions to extend loan facilities to real estate developers and their buyers since there is no such agencies that exist now for push up real estate and construction activities, disclosed Minister of Housing and Urban Poverty Alleviation and Tourism, Kumari Selja.

Inaugurating ASSOCHAM organized National Conference on Affordable Housing for Urban Poor, Kumari Selja also disclosed that her Ministry would also put in place a credit rating system in place so that genuine builders only are allowed in real estate and construction development and that unscrupulous elements are denied entry into it.

This is being done at war footing to ensure that real estate consumers are not at all cheated and their investments remain safe as it would be the job of credit rating agencies to rate builders and developers based on which licensing and loan facilities would be given to them, indicated Kumari Selja.

Replying to a query raised by one of the ASSOCHAM members on details of the committee for setting up of micro finance institutions, Kumari Selja said that it would be set up shortly and examine possibilities for their creation which would extend loan facilities at relaxed rates of interest.

The Minister also said that her Ministry was also seriously looking at revival of rental housing system and accordingly making necessary changes in the Rent Control Act to revive rental housing. She also added that the draft real estate model bill is being reworked to the optimal satisfaction of all stakeholders since there are complaints against it in its existing format.

Kumari Selja exuded confidence that the proposed model bill could be passed in the forthcoming winter session in view of significance as it is delayed already.

On the issue of rating agencies and their details, the Minister said that authorities in her Ministry have started working on it and the appointment of the rating agencies would be done in consultation with private sector through public private partnership initiatives.

The intention of the government is to ensure the maximum satisfaction to customers so that they are not cheated and only genuine players stay in real estate business. Based on recommendations of rating agencies, real estate builders would be rated for loans, licensing, land allocations etc, hinted Kumar Selja.

Speaking on the occasion, ASSOCHAM Real Estate Committee, Chairman and Group Executive Director, DLF, Mr. Rajiv Talwar demanded re-look at draft real estate model bill as in its existing format, if it is passed, it will further promote licensing raj which is against basic spirit of liberalization. He assured government that in its attempt to provide affording house to urban poor, private industry would come forward and supplement government efforts in order to provide housing for all.

Managing Director, Raheja Developers, Mr. Navin Raheja who is also co-chairman ASSOCHAM Real Estate Committee also urged the government to immediately incorporate genuine concerns of private sector in the model draft real estate bill as it overlooks many aspects of real estate development and shouldn’t be passed in its present format. 

Director APEDA says its exports to exceed Rs.1 lakh cr. in 5 yr

Delhi, September 09 2009: Agriculture & Processed Food Products Export Development Authority (APEDA) on Wednesday announced that export of APEDA monitored products would exceed Rs.1,00,000 crores (about 22 billion dollars) in the next five years, which should translate into a 5% share of the global agri export volume, said Mr. S. Dave, Director, APEDA.

Speaking at ASSOCHAM organized Agri Export National Summit here today which was inaugurated by Minister of State for Agriculture, Food & Civil Supplies Mr. K. V. Thomas, Mr. Dave added that APEDA monitored exports as of now in rupees terms are around 40,000 crores and added the way value addition and food processing is picking up, such exports by 2014-2015 would increase by at least another Rs.60,000 crores.

Mr. Dave explained that in the last five years, APEDA monitored exports in the developed world rose by 35%, which were growing at the rate of 20% before 2003-2004 and hoped substantial hike in such exports in another 5 years. He also added that out of total India’s agri export, about 45% is processed food.

He also mentioned the products looked after by APEDA include fresh and processed fruits and vegetables livestock products, cereals etc. have grown by 24% in Rupees terms (Rs.39461 crores) and 10% in dollar terms (8.67 billion dollars) in 2008-09. India being an agriculture based economy, APEDA looks at a substantial growth in the next 5 years.

Mr. Dave also pointed out that India has made considerable progress in ready to eat foods and organic products but more efforts need to be put in to add value and the maximum revenue will come from such kind of value addition.

Director, APEDA said that India has made considerable progress in ready-to-eat foods and organic products but more efforts need to be put in to add value as maximum revenue will come from this kind of value addition.

“APEDA is working with the industry in this direction. We are working on a cluster-based approach, regularly participate in the meetings of international food setting organizations like Codex. We are also working with the industry on initiatives like monitoring of pesticide residues, good agriculture practices and tracebility mechanism” said Mr. Dave.

Speaking on the occasion Minister of State for Agriculture , Food & Civil Mr. K. V. Thomas, said “In value terms, both agricultural exports and imports have registered consistent growth over the past 15 years. The growth rates are, however, widely divergent. While, agricultural exports grew at an annual growth rate of 8.3 per cent, the imports grew at 14.8 per cent per annum. The ratio of agricultural exports to agricultural import has decreased from 6.2 to 3.0. However, value of exports continues to exceed the value of imports by a large margin. This trend clearly shows that the trade policy reforms initiated by the government have greatly accelerated globalization of agricultural sector of India”.

Food Processing Secretary Mr.Ashok Sinha said that the Finance Ministry is likely to consider its request for inclusion of dairy, meet, fish and poultry in the category of perishable products to enable the sector avail of tax incentives so that their exports further pick up. 

EXON Solutions Announces Distribution Agreement with Carnegie Speech Company

Delhi, September 09 2009: EXON Solutions today announced a distribution agreement with Carnegie Speech Company, Pittsburgh, PA, USA, the premier developer of spoken language training software, to market and support Carnegie Speech Assessment and NativeAccent to Indian enterprises.

Carnegie Speech Company is the leading global provider of software for assessing and teaching spoken-languages to non-native speakers. With license to speech recognition and artificial intelligence technologies from Carnegie Mellon University, Carnegie Speech software enables cost-effective, scalable and personalized spoken-language assessment and training that maximizes language learning effectiveness while minimizing training time and expense.

Speaking on the occasion Navjit Singh, Business Head, EXON Solutions said, “It is indeed a great development for EXON Solutions as well the Indian enterprises we serve. Over the years Indian Enterprises have done well in the outsourcing domain due to its trained English speaking workforce. However there are still challenges in communication and interaction globally. By distributing Carnegie Speech’s products, EXON Solutions helps train the highly skilled Indian workforce on spoken English, thereby facilitating better interaction and communication”.

Carnegie Speech Assessment provides a rapid, thorough and cost-effective language assessment solution that enables global companies and academic enterprises to optimize hiring decisions, perform quality assurance testing, and measure language training effectiveness. NativeAccent, through its interactive, web-enabled exercises targeting English pronunciation, grammar and fluency, has improved pronunciation scores by 50% to 100% with as little as 20 hours training while decreasing language training time and costs by up to 50%. Clients are seeing up to a 10 times return on the software in the first year.

“We appreciate the confidence that EXON Solutions has shown in Carnegie Speech and we look forward to helping EXON Solution’s clients improve their spoken-English skills,” says Angela Kennedy, Carnegie Speech President and CEO. “We are confident that Carnegie Speech’s software, which customizes spoken-English training based on each student’s native language, pinpoints pronunciation errors, and personalizes the training curriculum for each student based on their training needs, will improve spoken English skills while delivering financial and operational benefits to EXON Solutions’ clientele. 

Microsoft Dynamics crosses 1500 Customer Mark in India

Delhi, September 09 2009: Microsoft India today announced that its Dynamics line of scalable, secure, customised and easy to use ERP (Enterprise Resource Planning) and CRM (Customer Relationship Management) solutions has crossed the 1500 customer milestone in a record-breaking timeframe of less than three years since India market entry in FY06. With this, Microsoft Dynamics becomes the fastest growing business solution in India by volume, with clients across industry sectors. “This milestone is an endorsement of the powerful customer value proposition of the Microsoft Dynamics range of solutions. They are easy to use and deploy, show clear business ROI and integrate easily into front end and back end technologies that customers are familiar with or already have installed.” said Mr. Rajan Anandan, Managing Director, Microsoft India.

In a recent IDC report India Packaged Software Market Analysis and Forecast 2009-2013 report, the India Enterprise Resource Management (ERM) solutions market was estimated to be US$ 155.4 million, US$ 224.6 million and US$ 263.3 million, respectively during CY 2006, CY 2007 and CY 2008; Microsoft enjoyed a share of 8%, 9% and 10%, respectively in revenue terms in this market in the respective calendar year periods. While the India Customer Relationship Management (CRM) solutions market was estimated to be US$ 81.5 million, US$ 115.7 million and US$ 140.8 million respectively during CY 2006, CY 2007 and CY 2008 and Microsoft enjoyed a share of 2%, 3% and 4%, respectively in revenue terms in this market in the respective calendar year periods.

Customers say Microsoft Dynamics helps them save costs

– “With Microsoft Dynamics CRM, our response time to customer queries has reduced from one day to immediate action. The entire sales operations have been streamlined, resulting in savings of 20% in payroll.” Rajgopal Nogja, President, Lavasa Corporation Limited.

– “By migrating to Microsoft Dynamics AX we saved about 60% of our previous maintenance costs and in addition, productivity has increased. Month end closing now takes two days. “Microsoft Dynamics AX, we saved about 60 % of our previous maintenance costs and in addition, productivity has increased. Month-end closing now takes two days.’ Yeow Shih Yeh, Information Technology Centre, General Manager, Hitachi Asia

– “Our travel business required tight integration of our partners and customer care centers. Yet, we required flexibility in operations. That’s why we opted for Microsoft Dynamics ERP solution. With ease of customization, and simplicity of usage, employee productivity has increased by 15 percent in post sales and fulfillment.” Rajesh Magow CFO, MakeMyTrip.com

By using Microsoft Dynamics, customers such as Lavasa Corporation Limited, have streamlined sales cycles and experienced 20 percent savings in payroll, while others like HIRCO (Hiranandani infrastructure & Real Estate Company) have achieved a nearly 40 percent increase in productivity. Mr. V. K. Bansal, Chief Financial Officer, Dhanuka Agritech Ltd. a Microsoft customer, echoing the same sentiment said, “Microsoft has its hand on the pulse of the customer and understands our needs well. The deployment at our end has helped us monitor, track and report our inventory and receivables at any point in time. By virtue of relevant, real time information, the solution helps in decreasing the costs from various fronts.”

While Mr. S.N Gupta, Chairman, Bharat Group, another Microsoft customer agreeing on the value proposition which Microsoft Dynamics has brought their way said, “With more efficient operations, we have real-time visibility into transactions. The significant advantage is that employee productivity is boosted.”

With such powerful customer value it is no surprise that Microsoft Dynamics is also India’s fastest growing business solution, adding at least one customer per day in the last 12 months across various industry sectors in the SMB as well as enterprise segments. The Dynamics family includes Microsoft Dynamics AX, the integrated ERP designed for large enterprises, Microsoft Dynamics NAV is specially designed for the medium to large enterprises, and Microsoft Dynamics CRM is a comprehensive customer relationship management solution. Microsoft also offers a set of customized solutions for certain industries like professional services, retail and manufacturing called Microsoft Dynamics Industry Solutions.

Apart from the solutions’ core value proposition, Microsoft has led the innovation charge in the ERP and CRM space in India in order to maximize customer value. For example Microsoft has made it easy and cost effective to acquire ERP and CRM solutions in India by offering a pay-as-you-go hosted model that eliminates upfront investments and also reduces the hassle and costs of in-house IT personnel. Microsoft also offers a competitively priced ERP for growing businesses which is available at less than 3 lakh and can be deployed in 2 weeks. Microsoft Dynamics is also easily customized making it the solution of choice across industry verticals including manufacturing, pharmaceuticals, IT, ITeS, BSFI and utilities ‘Customer insight led Innovation is a key driver for us at Microsoft in India, and this principle is offering both our customers and partners rich dividends.’ added Rajan. As a result, customers across far flung areas prefer to use Microsoft solutions, which are already used across the length and breadth of India, offering huge business opportunity to the 120-strong partner network, an invaluable component of Microsoft’s go to market strategy. 

Microsoft India Announces Strategic Alliance with TCS

Delhi, September 08 2009: Microsoft India and Tata Consultancy Services (TCS) – a leading IT services, consulting, business solutions and outsourcing firm today announced a strategic alliance between the two companies to launch Microsoft-TCS virtualization Center of Excellence (CoE) in Chennai. Designed to help customers experience the right approach to applying and managing virtualization across IT architectural layers (namely server, machine, application and desktop) in their business environments – the CoE will leverage best of breed Microsoft technologies (such as Windows Server 2008 Hyper-V and System Center Virtual Machine Manager 2008) to showcase virtualization scenarios to customers. The Microsoft-TCS virtualization CoE is a joint initiative by the companies to accelerate the adoption of virtualization technology in India.

“Virtualization is one of the most disruptive technologies in the world today. Though there is adequate knowledge on the benefits of virtualization – only 5% of the world’s servers are virtualized today! There is a clear gap between awareness and adoption of this technology – which has emerged from the lack of guidance among customers around actual implementation of this technology and their inability to demystify the conceptual transition from physical to virtual environments. Through our partnership with TCS to launch the virtualization CoE, we will address this crucial market need and help customers land the benefits of virtualization technology in accordance with their business requirements”, said Rajan Anandan (Managing Director, Microsoft India).

“We are always looking to enhance the services we provide to our customers. Virtualization has clearly emerged as a revolutionary technology with wide reaching implications for global as well as Indian businesses – one that our customers are showing a great deal of interest in. Due to its key benefits such as improved performance, reduced total cost of ownership and increased availability of IT infrastructure – virtualization is increasingly being viewed as an imperative technology by customers, specifically in these challenging economic times,” said P. R. Krishnan (Vice President & Global Head IT Infrastructure Services, TCS). “The Microsoft-TCS virtualization CoE is an initiative aimed at enabling our customers rapidly realize the advantages of this revolutionary technology. Based on robust virtualization solutions from Microsoft – the CoE will leverage best of breed technologies that are best suited to help our customers stay ahead in today’s competitive market environment”, added Krishnan.

The Microsoft-TCS virtualization CoE will deliver a heightened user experience that will help customers demystify Virtualization: migration from physical to virtual environments, user experience and performance, management of physical and virtual infrastructure from a single console – and experience how virtualization technology deployment in the datacenter can enable improved performance, higher availability and lower cost of ownership of IT infrastructure.

With a holistic approach to virtualization, Microsoft addresses its customers’ end-to-end virtualization requirements – with technologies and solutions spanning across the datacenter to the desktop, and from implementation to management (both virtual and physical resources). 

Legislation on cards to set up high value commercial courts: Veerapa Moily

Delhi, September 08 2009: A comprehensive legislation is at the stage of finalization for setting up of High Value Commercial Courts to quickly resolve disputes that prevent smooth inflow of Foreign Direct Investments (FDIs) in India in areas of infrastructure, power, telecom and ports etc., disclosed Minister for Law and Justice Mr. Veerapa Moily.

Inaugurating ASSOCHAM organized “National Conference on Legal and Administrative Reforms – Double Digit Growth” here today, Mr. Moily also disclosed that legislation would be enacted in forthcoming session of the Parliament as per which the proposed courts would enjoy status of high courts and deliver judgment in a time bound manner so that foreign investors do not encounter any delay in putting in their surpluses in India.

All matters relating to foreign investments that are subjected to disputes and mis-understanding between foreign investors and their domestic counter parts in aforesaid identified areas which in future delay their investment decision, can be referred to such High Value Commercial Courts, said the minister.

“The status of judges appointed by the government in such courts would be on par with those of Judges in High courts, clarified Mr. Moily further explaining that disputes relating to any FDIs would not be allowed to refer to lower courts after chains of such courts are established.

The Ministry of Law and Justice has done all preparations in this regard and the draft legislation is likely to be enacted in the winter session with necessary cabinet approval, pointed out the ministers. According to him such courts have become necessary to dispose off disputes relating to FDIs as UPA government wants to make India as the hub centre for Foreign Investments to create jobs and ensure double digit growth.

Responding to a query raised by ASSOCHAM President Mr. Sajjan Jindal on removal of Inspector Raj Mr. Moily said, “to eliminate the legacy of inspector Raj or licensing raj and other obstacles hampering industrial growth, there is no substitute to an efficient legal system.”

“However, this is predominantly a state government subject, but the centre will attend to it with urgency” assured the minister adding that the government would replace old legislation with new once in due course of time.

Mr. Moily also said that the labour market, tax regime and structure of corporate laws were modified to enable business to compete efficiently and withstand global competition. “These amendments will remove all complaints of harassment particularly on minor and unintentional errors. These laws also provide for transparent and accountable regulatory regime” stated the minister.

In his welcome address ASSOCHAM President Mr. Jinal emphasized the need for bringing about judicial and administrative reforms to ensure a steady growth in Indian economy and put it on par with global industries. The ASSOCHAM Legal affairs committee chairman Mr. Suman Jyoti Khaitan sort removal of corruption in the Indian democratic set up so as to ensure quick and fair dispensation of justice. Among others who spoke on the occasion included former CBI director Mr. Joginder Singh, ASSOCHAM Vice President Mr. Dilip Modi and its Secretary General Mr. D S Rawat. 

Evolving lifestyles reduces replacement cycle for TVs & appliances by half…. E&Y and Assocham

Delhi, September 07 2009: A joint report brought out by Ernst & Young and ASSOCHAM on Consumer Durables reveals that replacement cycle of televisions and domestic appliances has come down by almost 50 % due to evolving lifestyles of Indian consumers and it’s policies such as execution of 6th pay commission report and enactment of National Rural Employment Guarantee Act (NREGA) which together provided employment opportunities to over 47 million households from fiscal 2008-09 on wards.

Quoting findings of the report, ASSOCHAM president Mr Sajjan Jindal said that replacement cycle which was nearly 9 years for televisions and 12 years for domestic appliances has fallen to approximately 4-5 years for televisions and 7-8 years for domestic alliances from 2009-09 fiscal.and further fall down if households incomes improve which in any case go up.

Thee specific reasons have been assigned in the ASSOCHAM & EY report for this development which include a fast rate of obsolescence in technology is bringing down the prices of products and making them affordable to lower income groups as well.

Secondly, some initiatives taken by the government in improving income levels of households comprise execution of 6th pay commission report in which salaries of nearly 5 million central government employees have been revised by an average of 21% with an additional spend of US$ 3.7 billion (INR 157 billion for fiscal 2008-09, pointed out Mr Jindal’

With an allocation of US$ 8.15 billion (INR 391 billion ) in budget for 2009-10, the National Rural Employment Guarantee Act (NREGA) by the government aims at increasing wage employment in the rural areas. The scheme already provided employment opportunities to more than 44.7 million households in fiscal 2008-09. The bill guarantees 100 days employment in a year. In the financial budget 2009-10, a wage rate of INR 100 per day was committed by the finance minister.

The report, therefore, gives emphasis to manufacturers of televisions and domestic appliances for designing and offering low cost products to a significance market of 121 million households with income levels in the range of US$$ 1500 to UD$ 10,000, further pointed out the ASSOCHAM chief.

The report also observes that credit purchases account for nearly 20 % of the overall consumer appliances sales and this factor has underscored growth in consumer appliances industry over the past decade.

In addition the rural electrification in India stands at 76.5 % as on March 31, 2008 as per the Central Electricity Authority of India. This restricts households which can afford electronics and appliances products in unelectrified villages for using them.

The ASSOCHAM and E&Y report also highlights that under Bharat Nirman Project, towards the end of 11th five year plan period, electrification of 125,000 villages with 23 million households is also expected. In addition 146,185 km of new rural roads network is also expected to connect 66,802 habitations and drinking water to 55,067 uncovered habitations would also be provided. Besides, irrigation to 10 million hectare ans telephone connectivity to 66,822 villages are likelt to be provided. All these promised initiatives will open up markets for consumer electronics and appliances such as televisions, audios, refrigerators, air coolers and air conditioners, concludes the report. 

Synefra High-Tech Engineering SEZ Delivers Plug-n-Play Advantage at VadodaraGujarat Dairies Submit Memorandum to Honorable Prime Minister

Gujarat, September 07 2009: Synefra Engineering & Construction Ltd, (formerly Suzlon Infrastructure Limited) has established the first and only ‘plug-and-play’ Special Economic Zone (SEZ) for high technology engineering products and services in the Vadodara (Gujarat) region – the Synefra Hi-Tech Engineering SEZ.

“At a time when new SEZs are constantly announced but seldom make much progress, this ready-to-move special economic zone in one of Gujarat’s key industrial cities is a true testimony of Synefra’s commitment to this sector, our ability to deliver results on the ground and a reflection of our vision,” said Sanjeev Nakhasi, Corporate VP – Operations.

The infrastructure features available at Synefra Hi-Tech Engineering SEZ have been carefully chosen to mirror the needs of high-technology industries worldwide. Coupled with the competitive advantage of the SEZ model, this facility is poised to become a true engine of growth for its occupants. The key offerings include:

— Customized, cutting-edge infrastructure for industrial set up

— Hi-tech IT infrastructure, hi-speed telecommunication connectivity

— 30-meter wide, expandable internal roads

— Reliable power supplies via a 66/ 33 KV substation from M/s Gujarat Energy Transmission Co. Ltd., Waghodia

— The only SEZ in India offering uninterrupted operational gas supply

— Dedicated water supply from Sardar Sarovar Narmada Nigam

— Sustainability initiatives – rain water harvesting, ground water re-charging, superior waste management systems, substantial green cover in master plan

— Dedicated transport hub with all facilities

Moreover, Synefra High-Tech Engineering SEZ presents a significant advantage for moving in and becoming operational with no hindrances as the company is a complete solution provider.

“Apart from providing flexible plot sizes to suit individual needs, we have also ensured that there are no procedural hurdles for occupiers,” states Mr. Nakhasi “All necessary documentation is completed within 15 days. Synefra High-Tech Engineering SEZ already hosts an operational unit of M/S SE Forge Ltd. who has set up Asia’s largest state-of-the-art forging plant in the SEZ.

Being exclusively marketed by Jones Lang LaSalle Meghraj, this SEZ is poised to catalyze the Industrial development that has aided Gujarat to emerge as a prime industrial location. Moreover this SEZ falls well within the proposed DMIC High Speed Corridor.

Gujarat’s philosophy of first establishing infrastructure and then accelerating planned development makes it today one of the most progressive and proactive State in India. We consider our professional involvement with Synefra High-Tech Engineering SEZ a privilege, and our contribution in progress for this entrepreneur oriented State’s future,” says Nirav Kothary, Vice President- Strategic Consulting, Jones Lang LaSalle Meghraj.